Correlation Between Axcelis Technologies and Ambarella
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Ambarella 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 Ambarella into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Ambarella, you can compare the effects of market volatilities on Axcelis Technologies and Ambarella 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 Ambarella. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Ambarella.
Diversification Opportunities for Axcelis Technologies and Ambarella
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axcelis and Ambarella is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Ambarella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambarella 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 Ambarella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambarella has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Ambarella go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Ambarella
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.96 times less return on investment than Ambarella. But when comparing it to its historical volatility, Axcelis Technologies is 1.35 times less risky than Ambarella. It trades about 0.07 of its potential returns per unit of risk. Ambarella is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,812 in Ambarella on July 22, 2025 and sell it today you would earn a total of 1,456 from holding Ambarella or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Ambarella
Performance |
| Timeline |
| Axcelis Technologies |
| Ambarella |
Axcelis Technologies and Ambarella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Ambarella
The main advantage of trading using opposite Axcelis Technologies and Ambarella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Ambarella 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 Ambarella will offset losses from the drop in Ambarella's long position.| Axcelis Technologies vs. Acm Research | Axcelis Technologies vs. Diodes Incorporated | Axcelis Technologies vs. Power Integrations | Axcelis Technologies vs. Synaptics Incorporated |
| Ambarella vs. IPG Photonics | Ambarella vs. Silicon Laboratories | Ambarella vs. FormFactor | Ambarella vs. Quantum Computing |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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