Correlation Between OAKRIDGE INTERNATIONAL and Axcelis Technologies

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

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

Diversification Opportunities for OAKRIDGE INTERNATIONAL and Axcelis Technologies

-0.51

Correlation Coefficient

OAKRIDGE INTERNATIONAL  Axcelis Technologies

Excellent diversification

The 3 months correlation between OAKRIDGE and Axcelis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding OAKRIDGE INTERNATIONAL and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL i.e., OAKRIDGE INTERNATIONAL and Axcelis Technologies go up and down completely randomly.

Pair Corralation between OAKRIDGE INTERNATIONAL and Axcelis Technologies

Assuming the 90 days trading horizon OAKRIDGE INTERNATIONAL is expected to generate 2.26 times more return on investment than Axcelis Technologies. However, OAKRIDGE INTERNATIONAL is 2.26 times more volatile than Axcelis Technologies. It trades about -0.07 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.21 per unit of risk. If you would invest  3.40  in OAKRIDGE INTERNATIONAL on September 24, 2024 and sell it today you would lose (0.40) from holding OAKRIDGE INTERNATIONAL or give up 11.76% of portfolio value over 90 days.

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

OAKRIDGE INTERNATIONAL  vs.  Axcelis Technologies

OAKRIDGE INTERNATIONAL

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OAKRIDGE INTERNATIONAL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, OAKRIDGE INTERNATIONAL reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with OAKRIDGE INTERNATIONAL and Axcelis Technologies

The main advantage of trading using opposite OAKRIDGE INTERNATIONAL and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKRIDGE INTERNATIONAL 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 OAKRIDGE INTERNATIONAL 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.