Correlation Between Axcelis Technologies and Bank Of
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Bank Of 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 Bank Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and The Bank of, you can compare the effects of market volatilities on Axcelis Technologies and Bank Of 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 Bank Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Bank Of.
Diversification Opportunities for Axcelis Technologies and Bank Of
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and Bank is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Bank 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 Bank Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Bank has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Bank Of go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Bank Of
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the Bank Of. In addition to that, Axcelis Technologies is 1.99 times more volatile than The Bank of. It trades about -0.16 of its total potential returns per unit of risk. The Bank of is currently generating about 0.18 per unit of volatility. If you would invest 6,380 in The Bank of on September 20, 2024 and sell it today you would earn a total of 1,065 from holding The Bank of or generate 16.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Axcelis Technologies vs. The Bank of
Performance |
Timeline |
Axcelis Technologies |
The Bank |
Axcelis Technologies and Bank Of Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Axcelis Technologies and Bank Of
The main advantage of trading using opposite Axcelis Technologies and Bank Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Bank Of 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 Bank Of will offset losses from the drop in Bank Of's long position.Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
Bank Of vs. Pure Storage | Bank Of vs. National Bank Holdings | Bank Of vs. Ameriprise Financial | Bank Of vs. COMINTL BANK ADR1 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |