Correlation Between Mill City and Axcelis Technologies

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

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

Diversification Opportunities for Mill City and Axcelis Technologies

0.77

Correlation Coefficient

Mill City  Axcelis Technologies

Poor diversification

The 3 months correlation between Mill and Axcelis is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mill City Ventures and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Mill City 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 Mill City Ventures are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Mill City i.e., Mill City and Axcelis Technologies go up and down completely randomly.

Pair Corralation between Mill City and Axcelis Technologies

Given the investment horizon of 90 days Mill City Ventures is expected to generate 12.71 times more return on investment than Axcelis Technologies. However, Mill City is 12.71 times more volatile than Axcelis Technologies. It trades about 0.17 of its potential returns per unit of risk. Axcelis Technologies is currently generating about 0.18 per unit of risk. If you would invest  183.00  in Mill City Ventures on July 2, 2025 and sell it today you would earn a total of  428.00  from holding Mill City Ventures or generate 233.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	62.9%
Values	Daily Returns

Mill City Ventures  vs.  Axcelis Technologies

Mill City Ventures

Risk-Adjusted Performance

Good

Over the last 90 days Mill City Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively unfluctuating basic indicators, Mill City unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Mill City and Axcelis Technologies

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

The idea behind Mill City Ventures and Axcelis Technologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.