Correlation Between Axcelis Technologies and Virtus Investment

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

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

Diversification Opportunities for Axcelis Technologies and Virtus Investment

0.93

Correlation Coefficient

Axcelis Technologies  Virtus Investment

Almost no diversification

The 3 months correlation between Axcelis and Virtus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Virtus Investment Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Investment 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 Virtus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Investment has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Virtus Investment go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Virtus Investment

Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the Virtus Investment. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.02 times less risky than Virtus Investment. The stock trades about -0.21 of its potential returns per unit of risk. The Virtus Investment Partners is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  20,761  in Virtus Investment Partners on December 30, 2024 and sell it today you would lose (4,361) from holding Virtus Investment Partners or give up 21.01% of portfolio value over 90 days.

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

Axcelis Technologies  vs.  Virtus Investment Partners

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 basic 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.

Virtus Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Virtus Investment Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Axcelis Technologies and Virtus Investment

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

The idea behind Axcelis Technologies and Virtus Investment Partners 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.