Correlation Between Canaan and Stratasys
Can any of the company-specific risk be diversified away by investing in both Canaan and Stratasys 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 Canaan and Stratasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canaan Inc and Stratasys, you can compare the effects of market volatilities on Canaan and Stratasys 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 Canaan with a short position of Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canaan and Stratasys.
Diversification Opportunities for Canaan and Stratasys
Significant diversification
The 3 months correlation between Canaan and Stratasys is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Canaan Inc and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys and Canaan 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 Canaan Inc are associated (or correlated) with Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of Canaan i.e., Canaan and Stratasys go up and down completely randomly.
Pair Corralation between Canaan and Stratasys
Considering the 90-day investment horizon Canaan Inc is expected to under-perform the Stratasys. In addition to that, Canaan is 1.05 times more volatile than Stratasys. It trades about -0.06 of its total potential returns per unit of risk. Stratasys is currently generating about 0.27 per unit of volatility. If you would invest 898.00 in Stratasys on November 18, 2024 and sell it today you would earn a total of 301.00 from holding Stratasys or generate 33.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canaan Inc vs. Stratasys
Performance |
| Timeline |
| Canaan Inc |
| Stratasys |
Canaan and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canaan and Stratasys
The main advantage of trading using opposite Canaan and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaan position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' long position.| Canaan vs. 3D Systems | Canaan vs. NetApp Inc | Canaan vs. Rigetti Computing | Canaan vs. Logitech International SA |
| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
Check out your portfolio center.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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