Correlation Between Axcelis Tech and Apple

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Can any of the company-specific risk be diversified away by investing in both Axcelis Tech and Apple 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 Tech and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Tech and Apple Inc, you can compare the effects of market volatilities on Axcelis Tech and Apple 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 Tech with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Tech and Apple.

Diversification Opportunities for Axcelis Tech and Apple

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Axcelis and Apple is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Tech and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Axcelis Tech 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 Tech are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Axcelis Tech i.e., Axcelis Tech and Apple go up and down completely randomly.

Pair Corralation between Axcelis Tech and Apple

Given the investment horizon of 90 days Axcelis Tech is expected to generate 2.01 times more return on investment than Apple. However, Axcelis Tech is 2.01 times more volatile than Apple Inc. It trades about 0.03 of its potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of risk. If you would invest  6,338  in Axcelis Tech on July 9, 2022 and sell it today you would earn a total of  310.00  from holding Axcelis Tech or generate 4.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Axcelis Tech  vs.  Apple Inc

 Performance (%) 
       Timeline  
Axcelis Tech 
Axcelis Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Tech are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting essential indicators, Axcelis Tech reported solid returns over the last few months and may actually be approaching a breakup point.

Axcelis Price Channel

Apple Inc 
Apple Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, Apple is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Apple Price Channel

Axcelis Tech and Apple Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Axcelis Tech and Apple

The main advantage of trading using opposite Axcelis Tech and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Tech position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.
Axcelis Tech vs. Amazon Inc
The idea behind Axcelis Tech and Apple Inc 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.
Apple vs. Amazon Inc
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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