Correlation Between Desktop Metal and Ageagle Aerial
Can any of the company-specific risk be diversified away by investing in both Desktop Metal and Ageagle Aerial 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 Ageagle Aerial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desktop Metal and Ageagle Aerial Systems, you can compare the effects of market volatilities on Desktop Metal and Ageagle Aerial 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 Ageagle Aerial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desktop Metal and Ageagle Aerial.
Diversification Opportunities for Desktop Metal and Ageagle Aerial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Desktop and Ageagle is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Desktop Metal and Ageagle Aerial Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageagle Aerial 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 Ageagle Aerial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageagle Aerial Systems has no effect on the direction of Desktop Metal i.e., Desktop Metal and Ageagle Aerial go up and down completely randomly.
Pair Corralation between Desktop Metal and Ageagle Aerial
Allowing for the 90-day total investment horizon Desktop Metal is expected to under-perform the Ageagle Aerial. But the stock apears to be less risky and, when comparing its historical volatility, Desktop Metal is 6.65 times less risky than Ageagle Aerial. The stock trades about -0.14 of its potential returns per unit of risk. The Ageagle Aerial Systems is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 272.00 in Ageagle Aerial Systems on August 31, 2024 and sell it today you would earn a total of 340.00 from holding Ageagle Aerial Systems or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desktop Metal vs. Ageagle Aerial Systems
Performance |
| Timeline |
| Desktop Metal |
| Ageagle Aerial Systems |
Desktop Metal and Ageagle Aerial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desktop Metal and Ageagle Aerial
The main advantage of trading using opposite Desktop Metal and Ageagle Aerial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desktop Metal position performs unexpectedly, Ageagle Aerial 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 Ageagle Aerial will offset losses from the drop in Ageagle Aerial's long position.| Desktop Metal vs. Nano Dimension | Desktop Metal vs. 3D Systems | Desktop Metal vs. Markforged Holding Corp | Desktop Metal vs. Stratasys |
| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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