Correlation Between PAMT P and Axcelis Technologies

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

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

Diversification Opportunities for PAMT P and Axcelis Technologies

-0.22

Correlation Coefficient

PAMT P  Axcelis Technologies

Very good diversification

The 3 months correlation between PAMT and Axcelis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PAMT P and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and PAMT P 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 PAMT P 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 PAMT P i.e., PAMT P and Axcelis Technologies go up and down completely randomly.

Pair Corralation between PAMT P and Axcelis Technologies

Given the investment horizon of 90 days PAMT P is expected to under-perform the Axcelis Technologies. In addition to that, PAMT P is 1.07 times more volatile than Axcelis Technologies. It trades about -0.01 of its total potential returns per unit of risk. Axcelis Technologies is currently generating about 0.25 per unit of volatility. If you would invest  4,523  in Axcelis Technologies on April 21, 2025 and sell it today you would earn a total of  2,573  from holding Axcelis Technologies or generate 56.89% return on investment over 90 days.

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

PAMT P  vs.  Axcelis Technologies

PAMT P

Risk-Adjusted Performance

Very Weak

Over the last 90 days PAMT P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, PAMT P is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Axcelis Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Axcelis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PAMT P and Axcelis Technologies

The main advantage of trading using opposite PAMT P and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAMT P 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 PAMT P 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.

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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.