Correlation Between SentinelOne and Axcelis Technologies

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

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

Diversification Opportunities for SentinelOne and Axcelis Technologies

-0.29

Correlation Coefficient

SentinelOne  Axcelis Technologies

Very good diversification

The 3 months correlation between SentinelOne and Axcelis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Axcelis Technologies go up and down completely randomly.

Pair Corralation between SentinelOne and Axcelis Technologies

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Axcelis Technologies. But the stock apears to be less risky and, when comparing its historical volatility, SentinelOne is 1.13 times less risky than Axcelis Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The Axcelis Technologies is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  6,215  in Axcelis Technologies on May 10, 2025 and sell it today you would earn a total of  1,357  from holding Axcelis Technologies or generate 21.83% return on investment over 90 days.

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

SentinelOne  vs.  Axcelis Technologies

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Axcelis Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 9 (%) 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 SentinelOne and Axcelis Technologies

The main advantage of trading using opposite SentinelOne and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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 SentinelOne 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.