Correlation Between Axcelis Tech and Cerner

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

Diversification Opportunities for Axcelis Tech and Cerner

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Axcelis Tech and Cerner

If you would invest  9,492  in Cerner on June 28, 2022 and sell it today you would earn a total of  0.00  from holding Cerner or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Axcelis Tech  vs.  Cerner Corp.

 Performance (%) 
       Timeline  
Axcelis Tech 
Axcelis Performance
0 of 100
Over the last 90 days Axcelis Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Axcelis Tech is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Cerner 
Cerner Performance
0 of 100
Over the last 90 days Cerner has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Cerner is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Axcelis Tech and Cerner Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Axcelis Tech and Cerner

The main advantage of trading using opposite Axcelis Tech and Cerner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Tech position performs unexpectedly, Cerner 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 Cerner will offset losses from the drop in Cerner's long position.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Axcelis Tech as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Axcelis Tech's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Axcelis Tech's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Axcelis Tech.
The idea behind Axcelis Tech and Cerner 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.
Cerner vs. Clearwater Paper Corp
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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