Correlation Between Nano Dimension and 3Dx Industries
Can any of the company-specific risk be diversified away by investing in both Nano Dimension and 3Dx Industries 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 Nano Dimension and 3Dx Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Dimension and 3Dx Industries, you can compare the effects of market volatilities on Nano Dimension and 3Dx Industries 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 Nano Dimension with a short position of 3Dx Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Dimension and 3Dx Industries.
Diversification Opportunities for Nano Dimension and 3Dx Industries
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nano and 3Dx is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and 3Dx Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3Dx Industries and Nano Dimension 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 Nano Dimension are associated (or correlated) with 3Dx Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3Dx Industries has no effect on the direction of Nano Dimension i.e., Nano Dimension and 3Dx Industries go up and down completely randomly.
Pair Corralation between Nano Dimension and 3Dx Industries
Given the investment horizon of 90 days Nano Dimension is expected to under-perform the 3Dx Industries. But the stock apears to be less risky and, when comparing its historical volatility, Nano Dimension is 3.3 times less risky than 3Dx Industries. The stock trades about -0.16 of its potential returns per unit of risk. The 3Dx Industries is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1.32 in 3Dx Industries on November 29, 2024 and sell it today you would lose (0.12) from holding 3Dx Industries or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nano Dimension vs. 3Dx Industries
Performance |
| Timeline |
| Nano Dimension |
| 3Dx Industries |
Nano Dimension and 3Dx Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Dimension and 3Dx Industries
The main advantage of trading using opposite Nano Dimension and 3Dx Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension position performs unexpectedly, 3Dx Industries 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 3Dx Industries will offset losses from the drop in 3Dx Industries' long position.| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
| 3Dx Industries vs. D Wave Quantum | 3Dx Industries vs. Quantum Computing | 3Dx Industries vs. Rigetti Computing | 3Dx Industries vs. Nano Dimension |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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