Correlation Between Axcelis Technologies and Lam Research
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Lam Research 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 Lam Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Lam Research Corp, you can compare the effects of market volatilities on Axcelis Technologies and Lam Research 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 Lam Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Lam Research.
Diversification Opportunities for Axcelis Technologies and Lam Research
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Axcelis and Lam is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Lam Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lam Research Corp 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 Lam Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lam Research Corp has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Lam Research go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Lam Research
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.02 times less return on investment than Lam Research. In addition to that, Axcelis Technologies is 1.09 times more volatile than Lam Research Corp. It trades about 0.09 of its total potential returns per unit of risk. Lam Research Corp is currently generating about 0.1 per unit of volatility. If you would invest 7,595 in Lam Research Corp on March 26, 2025 and sell it today you would earn a total of 1,566 from holding Lam Research Corp or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Lam Research Corp
Performance |
| Timeline |
| Axcelis Technologies |
| Lam Research Corp |
Axcelis Technologies and Lam Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Lam Research
The main advantage of trading using opposite Axcelis Technologies and Lam Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Lam Research 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 Lam Research will offset losses from the drop in Lam Research's long position.| Axcelis Technologies vs. First Solar | Axcelis Technologies vs. Sunrun Inc | Axcelis Technologies vs. Canadian Solar | Axcelis Technologies vs. Complete Solaria, |
| Lam Research vs. ASML Holding NV | Lam Research vs. KLA Tencor | Lam Research vs. Axcelis Technologies | Lam Research vs. Teradyne |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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