Correlation Between Axcelis Technologies and Endeavour Mining

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

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

Diversification Opportunities for Axcelis Technologies and Endeavour Mining

0.27

Correlation Coefficient

Axcelis Technologies  Endeavour Mining

Modest diversification

The 3 months correlation between Axcelis and Endeavour is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Endeavour Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining PLC 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 Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining PLC has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Endeavour Mining go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Endeavour Mining

Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 1.31 times more return on investment than Endeavour Mining. However, Axcelis Technologies is 1.31 times more volatile than Endeavour Mining PLC. It trades about 0.22 of its potential returns per unit of risk. Endeavour Mining PLC is currently generating about 0.01 per unit of risk. If you would invest  3,929  in Axcelis Technologies on April 22, 2025 and sell it today you would earn a total of  2,085  from holding Axcelis Technologies or generate 53.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Axcelis Technologies  vs.  Endeavour Mining PLC

Axcelis Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Axcelis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Endeavour Mining PLC

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Axcelis Technologies and Endeavour Mining

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

The idea behind Axcelis Technologies and Endeavour Mining PLC 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.