Correlation Between Axcelis Technologies and Kaltura

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

Diversification Opportunities for Axcelis Technologies and Kaltura

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Axcelis and Kaltura is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Kaltura in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaltura 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 Kaltura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaltura has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Kaltura go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Kaltura

Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Kaltura. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.11 times less risky than Kaltura. The stock trades about -0.13 of its potential returns per unit of risk. The Kaltura is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  189.00  in Kaltura on December 29, 2023 and sell it today you would lose (54.00) from holding Kaltura or give up 28.57% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Axcelis Technologies  vs.  Kaltura

 Performance 
       Timeline  
Axcelis Technologies 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Axcelis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Kaltura 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Kaltura has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Axcelis Technologies and Kaltura Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Axcelis Technologies and Kaltura

The main advantage of trading using opposite Axcelis Technologies and Kaltura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Kaltura 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 Kaltura will offset losses from the drop in Kaltura's long position.
The idea behind Axcelis Technologies and Kaltura 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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