Correlation Between Axcelis Technologies and PAMT P
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and PAMT P 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 PAMT P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and PAMT P, you can compare the effects of market volatilities on Axcelis Technologies and PAMT P 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 PAMT P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and PAMT P.
Diversification Opportunities for Axcelis Technologies and PAMT P
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axcelis and PAMT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and PAMT P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAMT P 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 PAMT P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAMT P has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and PAMT P go up and down completely randomly.
Pair Corralation between Axcelis Technologies and PAMT P
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.94 times more return on investment than PAMT P. However, Axcelis Technologies is 1.07 times less risky than PAMT P. It trades about 0.25 of its potential returns per unit of risk. PAMT P is currently generating about -0.03 per unit of risk. If you would invest 4,510 in Axcelis Technologies on April 22, 2025 and sell it today you would earn a total of 2,586 from holding Axcelis Technologies or generate 57.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. PAMT P
Performance |
| Timeline |
| Axcelis Technologies |
| PAMT P |
Axcelis Technologies and PAMT P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and PAMT P
The main advantage of trading using opposite Axcelis Technologies and PAMT P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, PAMT P 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 PAMT P will offset losses from the drop in PAMT P's long position.| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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