Correlation Between MaxLinear and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both MaxLinear 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 MaxLinear and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxLinear and Axcelis Technologies, you can compare the effects of market volatilities on MaxLinear 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 MaxLinear with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxLinear and Axcelis Technologies.
Diversification Opportunities for MaxLinear and Axcelis Technologies
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MaxLinear and Axcelis is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and MaxLinear 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 MaxLinear 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 MaxLinear i.e., MaxLinear and Axcelis Technologies go up and down completely randomly.
Pair Corralation between MaxLinear and Axcelis Technologies
Considering the 90-day investment horizon MaxLinear is expected to generate 0.91 times more return on investment than Axcelis Technologies. However, MaxLinear is 1.09 times less risky than Axcelis Technologies. It trades about 0.29 of its potential returns per unit of risk. Axcelis Technologies is currently generating about 0.25 per unit of risk. If you would invest 965.00 in MaxLinear on April 24, 2025 and sell it today you would earn a total of 579.00 from holding MaxLinear or generate 60.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
MaxLinear vs. Axcelis Technologies
Performance |
Timeline |
MaxLinear |
Axcelis Technologies |
MaxLinear and Axcelis Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MaxLinear and Axcelis Technologies
The main advantage of trading using opposite MaxLinear and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxLinear 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.MaxLinear vs. Silicon Motion Technology | MaxLinear vs. MACOM Technology Solutions | MaxLinear vs. Semtech | MaxLinear vs. Penguin Solutions, |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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