Correlation Between Axcelis Technologies and Wingstop

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

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

Diversification Opportunities for Axcelis Technologies and Wingstop

-0.14

Correlation Coefficient

Axcelis Technologies  Wingstop

Good diversification

The 3 months correlation between Axcelis and Wingstop is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop 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 Wingstop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wingstop has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Wingstop go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Wingstop

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.77 times more return on investment than Wingstop. However, Axcelis Technologies is 1.3 times less risky than Wingstop. It trades about 0.16 of its potential returns per unit of risk. Wingstop is currently generating about 0.01 per unit of risk. If you would invest  6,201  in Axcelis Technologies on May 17, 2025 and sell it today you would earn a total of  2,175  from holding Axcelis Technologies or generate 35.07% return on investment over 90 days.

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

Axcelis Technologies  vs.  Wingstop

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.

Wingstop

Risk-Adjusted Performance

Weakest

Over the last 90 days Wingstop has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Wingstop is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Axcelis Technologies and Wingstop

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

The idea behind Axcelis Technologies and Wingstop 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 Transaction History module to view history of all your transactions and understand their impact on performance.