Correlation Between Desktop Metal and One Stop
Can any of the company-specific risk be diversified away by investing in both Desktop Metal and One Stop 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 One Stop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desktop Metal and One Stop Systems, you can compare the effects of market volatilities on Desktop Metal and One Stop 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 One Stop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desktop Metal and One Stop.
Diversification Opportunities for Desktop Metal and One Stop
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Desktop and One is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Desktop Metal and One Stop Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Stop Systems 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 One Stop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Stop Systems has no effect on the direction of Desktop Metal i.e., Desktop Metal and One Stop go up and down completely randomly.
Pair Corralation between Desktop Metal and One Stop
Allowing for the 90-day total investment horizon Desktop Metal is expected to generate 53.47 times less return on investment than One Stop. But when comparing it to its historical volatility, Desktop Metal is 1.49 times less risky than One Stop. It trades about 0.0 of its potential returns per unit of risk. One Stop Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 238.00 in One Stop Systems on September 2, 2024 and sell it today you would lose (1.00) from holding One Stop Systems or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desktop Metal vs. One Stop Systems
Performance |
| Timeline |
| Desktop Metal |
| One Stop Systems |
Desktop Metal and One Stop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desktop Metal and One Stop
The main advantage of trading using opposite Desktop Metal and One Stop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desktop Metal position performs unexpectedly, One Stop 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 One Stop will offset losses from the drop in One Stop's long position.| Desktop Metal vs. Knowles Cor | Desktop Metal vs. Ubiquiti Networks | Desktop Metal vs. AmpliTech Group | Desktop Metal vs. Viavi Solutions |
| One Stop vs. Rigetti Computing | One Stop vs. D Wave Quantum | One Stop vs. Desktop Metal | One Stop 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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