Correlation Between Desktop Metal and MicroCloud Hologram
Can any of the company-specific risk be diversified away by investing in both Desktop Metal and MicroCloud Hologram 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 Desktop Metal and MicroCloud Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desktop Metal and MicroCloud Hologram, you can compare the effects of market volatilities on Desktop Metal and MicroCloud Hologram 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 Desktop Metal with a short position of MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desktop Metal and MicroCloud Hologram.
Diversification Opportunities for Desktop Metal and MicroCloud Hologram
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Desktop and MicroCloud is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Desktop Metal and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram and Desktop Metal 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 Desktop Metal are associated (or correlated) with MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Desktop Metal i.e., Desktop Metal and MicroCloud Hologram go up and down completely randomly.
Pair Corralation between Desktop Metal and MicroCloud Hologram
Allowing for the 90-day total investment horizon Desktop Metal is expected to under-perform the MicroCloud Hologram. But the stock apears to be less risky and, when comparing its historical volatility, Desktop Metal is 10.61 times less risky than MicroCloud Hologram. The stock trades about -0.06 of its potential returns per unit of risk. The MicroCloud Hologram is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5.80 in MicroCloud Hologram on October 26, 2024 and sell it today you would earn a total of 9.20 from holding MicroCloud Hologram or generate 158.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desktop Metal vs. MicroCloud Hologram
Performance |
| Timeline |
| Desktop Metal |
| MicroCloud Hologram |
Desktop Metal and MicroCloud Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desktop Metal and MicroCloud Hologram
The main advantage of trading using opposite Desktop Metal and MicroCloud Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desktop Metal position performs unexpectedly, MicroCloud Hologram 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 MicroCloud Hologram will offset losses from the drop in MicroCloud Hologram's long position.| Desktop Metal vs. Nano Dimension | Desktop Metal vs. 3D Systems | Desktop Metal vs. Markforged Holding Corp | Desktop Metal vs. Stratasys |
| MicroCloud Hologram vs. MicroCloud Hologram | MicroCloud Hologram vs. BuzzFeed | MicroCloud Hologram vs. Arbe Robotics Ltd | MicroCloud Hologram vs. Nauticus Robotics |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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