Correlation Between Axcelis Technologies and Meli Hotels

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

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

Diversification Opportunities for Axcelis Technologies and Meli Hotels

0.84

Correlation Coefficient

Axcelis Technologies  Meli Hotels

Very poor diversification

The 3 months correlation between Axcelis and Meli is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Meli Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meli Hotels International and Axcelis Technologies 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 Axcelis Technologies are associated (or correlated) with Meli Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meli Hotels International has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Meli Hotels go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Meli Hotels

If you would invest  6,201  in Axcelis Technologies on April 18, 2025 and sell it today you would earn a total of  951.00  from holding Axcelis Technologies or generate 15.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	80.49%
Values	Daily Returns

Axcelis Technologies  vs.  Meli Hotels International

Axcelis Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 20 (%) 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.

Meli Hotels International

Risk-Adjusted Performance

OK

Over the last 90 days Meli Hotels International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Meli Hotels may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Axcelis Technologies and Meli Hotels

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

The idea behind Axcelis Technologies and Meli Hotels International 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.