Correlation Between Axcelis Technologies and S A P

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

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

Diversification Opportunities for Axcelis Technologies and S A P

0.32

Correlation Coefficient

Axcelis Technologies  S A P

Weak diversification

The 3 months correlation between Axcelis and SAP is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and SAP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and S A P go up and down completely randomly.

Pair Corralation between Axcelis Technologies and S A P

Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 2.22 times more return on investment than S A P. However, Axcelis Technologies is 2.22 times more volatile than SAP SE. It trades about 0.21 of its potential returns per unit of risk. SAP SE is currently generating about 0.04 per unit of risk. If you would invest  4,342  in Axcelis Technologies on April 25, 2025 and sell it today you would earn a total of  1,996  from holding Axcelis Technologies or generate 45.97% return on investment over 90 days.

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

Axcelis Technologies  vs.  SAP SE

Axcelis Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 16 (%) 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.

SAP SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, S A P 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 S A P

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

The idea behind Axcelis Technologies and SAP SE 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.