Correlation Between VTEX and Axcelis Technologies

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

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

Diversification Opportunities for VTEX and Axcelis Technologies

-0.63

Correlation Coefficient

VTEX  Axcelis Technologies

Excellent diversification

The 3 months correlation between VTEX and Axcelis is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding VTEX and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and VTEX 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 VTEX 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 VTEX i.e., VTEX and Axcelis Technologies go up and down completely randomly.

Pair Corralation between VTEX and Axcelis Technologies

Given the investment horizon of 90 days VTEX is expected to under-perform the Axcelis Technologies. In addition to that, VTEX is 1.27 times more volatile than Axcelis Technologies. It trades about -0.14 of its total potential returns per unit of risk. Axcelis Technologies is currently generating about 0.17 per unit of volatility. If you would invest  5,905  in Axcelis Technologies on May 22, 2025 and sell it today you would earn a total of  2,115  from holding Axcelis Technologies or generate 35.82% return on investment over 90 days.

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

VTEX  vs.  Axcelis Technologies

VTEX

Risk-Adjusted Performance

Weakest

Over the last 90 days VTEX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company 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 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 VTEX and Axcelis Technologies

The main advantage of trading using opposite VTEX and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VTEX 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 VTEX 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.