Correlation Between Axcelis Technologies and Canadian Solar
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Canadian Solar 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 Canadian Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Canadian Solar, you can compare the effects of market volatilities on Axcelis Technologies and Canadian Solar 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 Canadian Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Canadian Solar.
Diversification Opportunities for Axcelis Technologies and Canadian Solar
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axcelis and Canadian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Canadian Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Solar 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 Canadian Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Solar has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Canadian Solar go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Canadian Solar
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.9 times more return on investment than Canadian Solar. However, Axcelis Technologies is 1.11 times less risky than Canadian Solar. It trades about 0.32 of its potential returns per unit of risk. Canadian Solar is currently generating about 0.18 per unit of risk. If you would invest 5,927 in Axcelis Technologies on April 4, 2025 and sell it today you would earn a total of 1,368 from holding Axcelis Technologies or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Axcelis Technologies vs. Canadian Solar
Performance |
| Timeline |
| Axcelis Technologies |
| Canadian Solar |
Axcelis Technologies and Canadian Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Canadian Solar
The main advantage of trading using opposite Axcelis Technologies and Canadian Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Canadian Solar 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 Canadian Solar will offset losses from the drop in Canadian Solar's long position.| Axcelis Technologies vs. Daqo New Energy | Axcelis Technologies vs. Veeco Instruments | Axcelis Technologies vs. Teradyne | Axcelis Technologies vs. Trio Tech International |
| Canadian Solar vs. Air Lease | Canadian Solar vs. Paysafe | Canadian Solar vs. Lipocine | Canadian Solar vs. Alta Equipment Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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