Correlation Between Axcelis Technologies and Rev

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

Diversification Opportunities for Axcelis Technologies and Rev

0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between Axcelis and Rev is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Rev Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rev Group 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 Rev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rev Group has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Rev go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Rev

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.12 times more return on investment than Rev. However, Axcelis Technologies is 1.12 times more volatile than Rev Group. It trades about 0.03 of its potential returns per unit of risk. Rev Group is currently generating about -0.06 per unit of risk. If you would invest  7,869  in Axcelis Technologies on September 3, 2025 and sell it today you would earn a total of  282.00  from holding Axcelis Technologies or generate 3.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Axcelis Technologies  vs.  Rev Group

 Performance 
       Timeline  
Axcelis Technologies 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Axcelis Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Rev Group 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Rev Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Axcelis Technologies and Rev Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Axcelis Technologies and Rev

The main advantage of trading using opposite Axcelis Technologies and Rev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Rev 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 Rev will offset losses from the drop in Rev's long position.
The idea behind Axcelis Technologies and Rev Group 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.
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.

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