Correlation Between Cricut and Stratasys
Can any of the company-specific risk be diversified away by investing in both Cricut 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 Cricut and Stratasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cricut Inc and Stratasys, you can compare the effects of market volatilities on Cricut 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 Cricut with a short position of Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Stratasys.
Diversification Opportunities for Cricut and Stratasys
Very good diversification
The 3 months correlation between Cricut and Stratasys is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys and Cricut 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 Cricut 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 Cricut i.e., Cricut and Stratasys go up and down completely randomly.
Pair Corralation between Cricut and Stratasys
Given the investment horizon of 90 days Cricut Inc is expected to under-perform the Stratasys. But the stock apears to be less risky and, when comparing its historical volatility, Cricut Inc is 1.49 times less risky than Stratasys. The stock trades about -0.27 of its potential returns per unit of risk. The Stratasys is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Stratasys on August 28, 2024 and sell it today you would earn a total of 206.00 from holding Stratasys or generate 26.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cricut Inc vs. Stratasys
Performance |
| Timeline |
| Cricut Inc |
| Stratasys |
Cricut and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cricut and Stratasys
The main advantage of trading using opposite Cricut and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut 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.| Cricut vs. D Wave Quantum | Cricut vs. Rigetti Computing | Cricut vs. Super Micro Computer | Cricut vs. Quantum Computing |
| Stratasys vs. D Wave Quantum | Stratasys vs. Rigetti Computing | Stratasys vs. Cricut Inc | Stratasys vs. Quantum Computing |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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