Correlation Between CIA ENGER and Axcelis Technologies

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

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

Diversification Opportunities for CIA ENGER and Axcelis Technologies

0.0

Correlation Coefficient

CIA ENGER  Axcelis Technologies

Pay attention - limited upside

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

Pair Corralation between CIA ENGER and Axcelis Technologies

If you would invest  0.00  in CIA ENGER ADR on October 4, 2024 and sell it today you would earn a total of  0.00  from holding CIA ENGER ADR or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

CIA ENGER ADR  vs.  Axcelis Technologies

CIA ENGER ADR

Risk-Adjusted Performance

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Weak

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

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 weak performance in the last few months, the Stock's basic 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.

Pair Trading with CIA ENGER and Axcelis Technologies

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

The idea behind CIA ENGER ADR and Axcelis Technologies 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.