Correlation Between Axcelis Technologies and Pixelworks

Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Pixelworks 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 Pixelworks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axcelis Technologies and Pixelworks, you can compare the effects of market volatilities on Axcelis Technologies and Pixelworks 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 Pixelworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Pixelworks.

Diversification Opportunities for Axcelis Technologies and Pixelworks

-0.27

Correlation Coefficient

Axcelis Technologies  Pixelworks

Very good diversification

The 3 months correlation between Axcelis and Pixelworks is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Pixelworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pixelworks 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 Pixelworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pixelworks has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Pixelworks go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Pixelworks

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.87 times more return on investment than Pixelworks. However, Axcelis Technologies is 1.15 times less risky than Pixelworks. It trades about 0.05 of its potential returns per unit of risk. Pixelworks is currently generating about 0.0 per unit of risk. If you would invest  5,820  in Axcelis Technologies on January 26, 2024 and sell it today you would earn a total of  4,048  from holding Axcelis Technologies or generate 69.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Axcelis Technologies  vs.  Pixelworks

Axcelis Technologies

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pixelworks

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pixelworks are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Pixelworks showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axcelis Technologies and Pixelworks

The main advantage of trading using opposite Axcelis Technologies and Pixelworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Pixelworks 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 Pixelworks will offset losses from the drop in Pixelworks' long position.

The idea behind Axcelis Technologies and Pixelworks 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.