Correlation Between ITT and Shapeways Holdings,
Can any of the company-specific risk be diversified away by investing in both ITT and Shapeways Holdings, 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 ITT and Shapeways Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITT Inc and Shapeways Holdings, Common, you can compare the effects of market volatilities on ITT and Shapeways Holdings, 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 ITT with a short position of Shapeways Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITT and Shapeways Holdings,.
Diversification Opportunities for ITT and Shapeways Holdings,
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ITT and Shapeways is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ITT Inc and Shapeways Holdings, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapeways Holdings, and ITT 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 ITT Inc are associated (or correlated) with Shapeways Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shapeways Holdings, has no effect on the direction of ITT i.e., ITT and Shapeways Holdings, go up and down completely randomly.
Pair Corralation between ITT and Shapeways Holdings,
Considering the 90-day investment horizon ITT Inc is expected to generate 0.12 times more return on investment than Shapeways Holdings,. However, ITT Inc is 8.68 times less risky than Shapeways Holdings,. It trades about -0.39 of its potential returns per unit of risk. Shapeways Holdings, Common is currently generating about -0.22 per unit of risk. If you would invest 15,929 in ITT Inc on September 24, 2024 and sell it today you would lose (1,561) from holding ITT Inc or give up 9.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITT Inc vs. Shapeways Holdings, Common
Performance |
| Timeline |
| ITT Inc |
| Shapeways Holdings, |
ITT and Shapeways Holdings, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITT and Shapeways Holdings,
The main advantage of trading using opposite ITT and Shapeways Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITT position performs unexpectedly, Shapeways Holdings, 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 Shapeways Holdings, will offset losses from the drop in Shapeways Holdings,'s long position.The idea behind ITT Inc and Shapeways Holdings, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Shapeways Holdings, vs. Graco Inc | Shapeways Holdings, vs. Ametek Inc | Shapeways Holdings, vs. IDEX Corporation | Shapeways Holdings, vs. ITT Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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