Correlation Between Aixtron SE and Rubicon Technology

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

By analyzing existing cross correlation between Aixtron SE ADR and Rubicon Technology, you can compare the effects of market volatilities on Aixtron SE and Rubicon Technology 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 Aixtron SE with a short position of Rubicon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aixtron SE and Rubicon Technology.

Diversification Opportunities for Aixtron SE and Rubicon Technology

0.0

Correlation Coefficient

Aixtron SE  Rubicon Technology

Pay attention - limited upside

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

Pair Corralation between Aixtron SE and Rubicon Technology

If you would invest (100.00) in Rubicon Technology on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Rubicon Technology or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aixtron SE ADR  vs.  Rubicon Technology

Aixtron SE ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aixtron SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aixtron SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rubicon Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rubicon Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Rubicon Technology is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Aixtron SE and Rubicon Technology

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

The idea behind Aixtron SE ADR and Rubicon Technology 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.