Correlation Between Axcelis Technologies and Titan International

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

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

Diversification Opportunities for Axcelis Technologies and Titan International

0.92

Correlation Coefficient

Axcelis Technologies  Titan International

Almost no diversification

The 3 months correlation between Axcelis and Titan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Titan International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan International 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 Titan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan International has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Titan International go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Titan International

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.85 times more return on investment than Titan International. However, Axcelis Technologies is 1.17 times less risky than Titan International. It trades about 0.16 of its potential returns per unit of risk. Titan International is currently generating about 0.11 per unit of risk. If you would invest  5,209  in Axcelis Technologies on May 4, 2025 and sell it today you would earn a total of  1,666  from holding Axcelis Technologies or generate 31.98% return on investment over 90 days.

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

Axcelis Technologies  vs.  Titan International

Axcelis Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 12 (%) 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.

Titan International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Titan International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Titan International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axcelis Technologies and Titan International

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

The idea behind Axcelis Technologies and Titan International 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..