Correlation Between Axcelis Technologies and Alarm Holdings

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

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

Diversification Opportunities for Axcelis Technologies and Alarm Holdings

0.13

Correlation Coefficient

Axcelis Technologies  Alarm Holdings

Average diversification

The 3 months correlation between Axcelis and Alarm is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Alarm Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alarm Holdings 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 Alarm Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alarm Holdings has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Alarm Holdings go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Alarm Holdings

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.37 times more return on investment than Alarm Holdings. However, Axcelis Technologies is 1.37 times more volatile than Alarm Holdings. It trades about -0.01 of its potential returns per unit of risk. Alarm Holdings is currently generating about -0.11 per unit of risk. If you would invest  8,038  in Axcelis Technologies on August 24, 2025 and sell it today you would lose (350.00) from holding Axcelis Technologies or give up 4.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Axcelis Technologies  vs.  Alarm Holdings

Axcelis Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Axcelis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Axcelis Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Alarm Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Alarm Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Axcelis Technologies and Alarm Holdings

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

The idea behind Axcelis Technologies and Alarm Holdings 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.