Correlation Between Axcelis Technologies and Solstad Offshore

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

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

Diversification Opportunities for Axcelis Technologies and Solstad Offshore

-0.13

Correlation Coefficient

Axcelis Technologies  Solstad Offshore

Good diversification

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

Pair Corralation between Axcelis Technologies and Solstad Offshore

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.77 times less return on investment than Solstad Offshore. But when comparing it to its historical volatility, Axcelis Technologies is 4.67 times less risky than Solstad Offshore. It trades about 0.15 of its potential returns per unit of risk. Solstad Offshore ASA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  309.00  in Solstad Offshore ASA on May 3, 2025 and sell it today you would earn a total of  0.00  from holding Solstad Offshore ASA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Axcelis Technologies  vs.  Solstad Offshore ASA

Axcelis Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 11 (%) 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.

Solstad Offshore ASA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Solstad Offshore ASA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Solstad Offshore reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axcelis Technologies and Solstad Offshore

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

The idea behind Axcelis Technologies and Solstad Offshore ASA 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.

Check out your portfolio center.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.