Correlation Between Axcelis Technologies and Graphene Solar
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Graphene Solar at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Axcelis Technologies and Graphene Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Graphene Solar Technologies, you can compare the effects of market volatilities on Axcelis Technologies and Graphene Solar and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Axcelis Technologies with a short position of Graphene Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Graphene Solar.
Diversification Opportunities for Axcelis Technologies and Graphene Solar
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Axcelis and Graphene is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Graphene Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Solar Techn and Axcelis Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Axcelis Technologies are associated (or correlated) with Graphene Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphene Solar Techn has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Graphene Solar go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Graphene Solar
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Graphene Solar. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 79.08 times less risky than Graphene Solar. The stock trades about -0.27 of its potential returns per unit of risk. The Graphene Solar Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.71 in Graphene Solar Technologies on September 26, 2024 and sell it today you would earn a total of 1.99 from holding Graphene Solar Technologies or generate 280.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Axcelis Technologies vs. Graphene Solar Technologies
Performance |
Timeline |
Axcelis Technologies |
Graphene Solar Techn |
Axcelis Technologies and Graphene Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Axcelis Technologies and Graphene Solar
The main advantage of trading using opposite Axcelis Technologies and Graphene Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Graphene Solar can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Graphene Solar will offset losses from the drop in Graphene Solar's long position.Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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