Correlation Between Axcelis Technologies and Atomera

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

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

Diversification Opportunities for Axcelis Technologies and Atomera

0.85

Correlation Coefficient

Axcelis Technologies  Atomera

Very poor diversification

The 3 months correlation between Axcelis and Atomera is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Atomera go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Atomera

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.27 times more return on investment than Atomera. However, Axcelis Technologies is 3.67 times less risky than Atomera. It trades about -0.17 of its potential returns per unit of risk. Atomera is currently generating about -0.11 per unit of risk. If you would invest  7,002  in Axcelis Technologies on December 29, 2024 and sell it today you would lose (2,031) from holding Axcelis Technologies or give up 29.01% of portfolio value over 90 days.

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

Axcelis Technologies  vs.  Atomera

Axcelis Technologies

Risk-Adjusted Performance

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 essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Atomera

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atomera 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Axcelis Technologies and Atomera

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

The idea behind Axcelis Technologies and Atomera 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.