Correlation Between Caseys General and 3D Systems
Can any of the company-specific risk be diversified away by investing in both Caseys General and 3D Systems 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 Caseys General and 3D Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and 3D Systems, you can compare the effects of market volatilities on Caseys General and 3D Systems 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 Caseys General with a short position of 3D Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and 3D Systems.
Diversification Opportunities for Caseys General and 3D Systems
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caseys and SYV is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems and Caseys General 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 Caseys General Stores are associated (or correlated) with 3D Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Systems has no effect on the direction of Caseys General i.e., Caseys General and 3D Systems go up and down completely randomly.
Pair Corralation between Caseys General and 3D Systems
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 0.36 times more return on investment than 3D Systems. However, Caseys General Stores is 2.79 times less risky than 3D Systems. It trades about 0.08 of its potential returns per unit of risk. 3D Systems is currently generating about -0.02 per unit of risk. If you would invest 21,711 in Caseys General Stores on September 10, 2024 and sell it today you would earn a total of 18,089 from holding Caseys General Stores or generate 83.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Caseys General Stores vs. 3D Systems
Performance |
| Timeline |
| Caseys General Stores |
| 3D Systems |
Caseys General and 3D Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and 3D Systems
The main advantage of trading using opposite Caseys General and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, 3D Systems 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 3D Systems will offset losses from the drop in 3D Systems' long position.| Caseys General vs. Lifeway Foods | Caseys General vs. JD SPORTS FASH | Caseys General vs. CN MODERN DAIRY | Caseys General vs. Playtech plc |
| 3D Systems vs. BJs Wholesale Club | 3D Systems vs. Retail Estates NV | 3D Systems vs. RETAIL FOOD GROUP | 3D Systems vs. Dalata Hotel Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |