Correlation Between Axcelis Technologies and Atea ASA

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

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

Diversification Opportunities for Axcelis Technologies and Atea ASA

0.0

Correlation Coefficient

Axcelis Technologies  Atea ASA

Pay attention - limited upside

The 3 months correlation between Axcelis and Atea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Atea ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atea ASA 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 Atea ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atea ASA has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Atea ASA go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Atea ASA

Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Atea ASA. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 3.48 times less risky than Atea ASA. The stock trades about -0.01 of its potential returns per unit of risk. The Atea ASA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  800.00  in Atea ASA on October 4, 2024 and sell it today you would earn a total of  602.00  from holding Atea ASA or generate 75.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	72.58%
Values	Daily Returns

Axcelis Technologies  vs.  Atea ASA

Axcelis Technologies

Risk-Adjusted Performance

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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 unsteady performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Atea ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atea ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Atea ASA 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 Atea ASA

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

The idea behind Axcelis Technologies and Atea ASA 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.