Correlation Between Axcelis Technologies and COPLAND ROAD

Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and COPLAND ROAD 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 COPLAND ROAD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axcelis Technologies and COPLAND ROAD CAPITAL, you can compare the effects of market volatilities on Axcelis Technologies and COPLAND ROAD 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 COPLAND ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and COPLAND ROAD.

Diversification Opportunities for Axcelis Technologies and COPLAND ROAD

0.35

Correlation Coefficient

Axcelis Technologies  COPLAND ROAD

Weak diversification

The 3 months correlation between Axcelis and COPLAND is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and COPLAND ROAD CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COPLAND ROAD CAPITAL 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 COPLAND ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COPLAND ROAD CAPITAL has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and COPLAND ROAD go up and down completely randomly.

Pair Corralation between Axcelis Technologies and COPLAND ROAD

Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the COPLAND ROAD. In addition to that, Axcelis Technologies is 1.13 times more volatile than COPLAND ROAD CAPITAL. It trades about -0.16 of its total potential returns per unit of risk. COPLAND ROAD CAPITAL is currently generating about -0.02 per unit of volatility. If you would invest  4,660  in COPLAND ROAD CAPITAL on September 26, 2024 and sell it today you would lose (225.00) from holding COPLAND ROAD CAPITAL or give up 4.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Axcelis Technologies  vs.  COPLAND ROAD CAPITAL

Axcelis Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Axcelis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

COPLAND ROAD CAPITAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COPLAND ROAD CAPITAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, COPLAND ROAD is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Axcelis Technologies and COPLAND ROAD

The main advantage of trading using opposite Axcelis Technologies and COPLAND ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, COPLAND ROAD 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 COPLAND ROAD will offset losses from the drop in COPLAND ROAD's long position.

The idea behind Axcelis Technologies and COPLAND ROAD CAPITAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.