Correlation Between Sun Art and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Sun Art and Axcelis Technologies 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 Sun Art and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Art Retail and Axcelis Technologies, you can compare the effects of market volatilities on Sun Art and Axcelis Technologies 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 Sun Art with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Art and Axcelis Technologies.
Diversification Opportunities for Sun Art and Axcelis Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Axcelis is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sun Art Retail and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Sun Art 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 Sun Art Retail are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Sun Art i.e., Sun Art and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Sun Art and Axcelis Technologies
Assuming the 90 days trading horizon Sun Art Retail is expected to generate 6.01 times more return on investment than Axcelis Technologies. However, Sun Art is 6.01 times more volatile than Axcelis Technologies. It trades about 0.11 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.16 per unit of risk. If you would invest 18.00 in Sun Art Retail on September 25, 2024 and sell it today you would earn a total of 10.00 from holding Sun Art Retail or generate 55.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Art Retail vs. Axcelis Technologies
Performance |
Timeline |
Sun Art Retail |
Axcelis Technologies |
Sun Art and Axcelis Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Art and Axcelis Technologies
The main advantage of trading using opposite Sun Art and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Art position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.Sun Art vs. Meli Hotels International | Sun Art vs. MHP Hotel AG | Sun Art vs. Hyatt Hotels | Sun Art vs. Wyndham Hotels Resorts |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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