Correlation Between Easy Software and Axcelis Technologies

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

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

Diversification Opportunities for Easy Software and Axcelis Technologies

0.6

Correlation Coefficient

Easy Software  Axcelis Technologies

Poor diversification

The 3 months correlation between Easy and Axcelis is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Easy Software 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 Easy Software AG 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 Easy Software i.e., Easy Software and Axcelis Technologies go up and down completely randomly.

Pair Corralation between Easy Software and Axcelis Technologies

Assuming the 90 days trading horizon Easy Software is expected to generate 5.86 times less return on investment than Axcelis Technologies. But when comparing it to its historical volatility, Easy Software AG is 1.4 times less risky than Axcelis Technologies. It trades about 0.06 of its potential returns per unit of risk. Axcelis Technologies is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  3,967  in Axcelis Technologies on April 24, 2025 and sell it today you would earn a total of  2,399  from holding Axcelis Technologies or generate 60.47% return on investment over 90 days.

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

Easy Software AG  vs.  Axcelis Technologies

Easy Software AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Easy Software AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Easy Software may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 uncertain basic indicators, Axcelis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Easy Software and Axcelis Technologies

The main advantage of trading using opposite Easy Software and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software 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 Easy Software AG 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.