Correlation Between Axcelis Technologies and Boston Beer

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

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

Diversification Opportunities for Axcelis Technologies and Boston Beer

-0.93

Correlation Coefficient

Axcelis Technologies  Boston Beer

Pay attention - limited upside

The 3 months correlation between Axcelis and Boston is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and The Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer 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 Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Boston Beer go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Boston Beer

Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the Boston Beer. In addition to that, Axcelis Technologies is 1.71 times more volatile than The Boston Beer. It trades about -0.1 of its total potential returns per unit of risk. The Boston Beer is currently generating about 0.22 per unit of volatility. If you would invest  24,280  in The Boston Beer on September 14, 2024 and sell it today you would earn a total of  5,620  from holding The Boston Beer or generate 23.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Axcelis Technologies  vs.  The Boston Beer

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.

Boston Beer

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Boston Beer are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Boston Beer reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axcelis Technologies and Boston Beer

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

The idea behind Axcelis Technologies and The Boston Beer 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.