Correlation Between Axcelis Technologies and Topbuild Corp

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

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

Diversification Opportunities for Axcelis Technologies and Topbuild Corp

0.89

Correlation Coefficient

Axcelis Technologies  Topbuild Corp

Very poor diversification

The 3 months correlation between Axcelis and Topbuild is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Topbuild Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topbuild Corp 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 Topbuild Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topbuild Corp has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Topbuild Corp go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Topbuild Corp

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.29 times less return on investment than Topbuild Corp. In addition to that, Axcelis Technologies is 1.32 times more volatile than Topbuild Corp. It trades about 0.14 of its total potential returns per unit of risk. Topbuild Corp is currently generating about 0.23 per unit of volatility. If you would invest  30,000  in Topbuild Corp on May 14, 2025 and sell it today you would earn a total of  11,541  from holding Topbuild Corp or generate 38.47% return on investment over 90 days.

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

Axcelis Technologies  vs.  Topbuild Corp

Axcelis Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Axcelis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Topbuild Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Topbuild Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, Topbuild Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axcelis Technologies and Topbuild Corp

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

The idea behind Axcelis Technologies and Topbuild Corp 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.