Correlation Between Axcelis Technologies and ENTERPRISE

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

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

Diversification Opportunities for Axcelis Technologies and ENTERPRISE

-0.15

Correlation Coefficient

Axcelis Technologies  ENTERPRISE

Good diversification

The 3 months correlation between Axcelis and ENTERPRISE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and ENTERPRISE go up and down completely randomly.

Pair Corralation between Axcelis Technologies and ENTERPRISE

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 5.48 times more return on investment than ENTERPRISE. However, Axcelis Technologies is 5.48 times more volatile than ENTERPRISE PRODS OPER. It trades about 0.14 of its potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about 0.12 per unit of risk. If you would invest  6,215  in Axcelis Technologies on May 12, 2025 and sell it today you would earn a total of  1,727  from holding Axcelis Technologies or generate 27.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Axcelis Technologies  vs.  ENTERPRISE PRODS OPER

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.

ENTERPRISE PRODS OPER

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ENTERPRISE PRODS OPER are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ENTERPRISE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Axcelis Technologies and ENTERPRISE

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

The idea behind Axcelis Technologies and ENTERPRISE PRODS OPER 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.