Correlation Between Axcelis Technologies and Ispire Technology

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

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

Diversification Opportunities for Axcelis Technologies and Ispire Technology

0.28

Correlation Coefficient

Axcelis Technologies  Ispire Technology

Modest diversification

The 3 months correlation between Axcelis and Ispire is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Ispire Technology Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ispire Technology Common 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 Ispire Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ispire Technology Common has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Ispire Technology go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Ispire Technology

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.57 times more return on investment than Ispire Technology. However, Axcelis Technologies is 1.75 times less risky than Ispire Technology. It trades about 0.17 of its potential returns per unit of risk. Ispire Technology Common is currently generating about 0.04 per unit of risk. If you would invest  5,907  in Axcelis Technologies on May 21, 2025 and sell it today you would earn a total of  2,113  from holding Axcelis Technologies or generate 35.77% return on investment over 90 days.

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

Axcelis Technologies  vs.  Ispire Technology Common

Axcelis Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 13 (%) 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.

Ispire Technology Common

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Ispire Technology Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Ispire Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axcelis Technologies and Ispire Technology

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

The idea behind Axcelis Technologies and Ispire Technology Common 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 Global Correlations module to find global opportunities by holding instruments from different markets.