Correlation Between Markforged Holding and Cricut
Can any of the company-specific risk be diversified away by investing in both Markforged Holding and Cricut 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 Markforged Holding and Cricut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Markforged Holding Corp and Cricut Inc, you can compare the effects of market volatilities on Markforged Holding and Cricut 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 Markforged Holding with a short position of Cricut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markforged Holding and Cricut.
Diversification Opportunities for Markforged Holding and Cricut
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Markforged and Cricut is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Markforged Holding Corp and Cricut Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cricut Inc and Markforged Holding 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 Markforged Holding Corp are associated (or correlated) with Cricut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cricut Inc has no effect on the direction of Markforged Holding i.e., Markforged Holding and Cricut go up and down completely randomly.
Pair Corralation between Markforged Holding and Cricut
Given the investment horizon of 90 days Markforged Holding Corp is expected to generate 1.65 times more return on investment than Cricut. However, Markforged Holding is 1.65 times more volatile than Cricut Inc. It trades about 0.01 of its potential returns per unit of risk. Cricut Inc is currently generating about 0.0 per unit of risk. If you would invest 1,020 in Markforged Holding Corp on August 28, 2024 and sell it today you would lose (590.00) from holding Markforged Holding Corp or give up 57.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Markforged Holding Corp vs. Cricut Inc
Performance |
| Timeline |
| Markforged Holding Corp |
| Cricut Inc |
Markforged Holding and Cricut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Markforged Holding and Cricut
The main advantage of trading using opposite Markforged Holding and Cricut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markforged Holding position performs unexpectedly, Cricut 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 Cricut will offset losses from the drop in Cricut's long position.| Markforged Holding vs. Stratasys | Markforged Holding vs. Desktop Metal | Markforged Holding vs. 3D Systems | Markforged Holding vs. Nano Dimension |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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