Correlation Between Nano Dimension and Quantum
Can any of the company-specific risk be diversified away by investing in both Nano Dimension and Quantum 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 Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Dimension and Quantum, you can compare the effects of market volatilities on Nano Dimension and Quantum 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 Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Dimension and Quantum.
Diversification Opportunities for Nano Dimension and Quantum
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nano and Quantum is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum 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 Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of Nano Dimension i.e., Nano Dimension and Quantum go up and down completely randomly.
Pair Corralation between Nano Dimension and Quantum
Given the investment horizon of 90 days Nano Dimension is expected to under-perform the Quantum. But the stock apears to be less risky and, when comparing its historical volatility, Nano Dimension is 5.54 times less risky than Quantum. The stock trades about -0.15 of its potential returns per unit of risk. The Quantum is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 503.00 in Quantum on August 24, 2024 and sell it today you would lose (101.00) from holding Quantum or give up 20.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Dimension vs. Quantum
Performance |
| Timeline |
| Nano Dimension |
| Quantum |
Nano Dimension and Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Dimension and Quantum
The main advantage of trading using opposite Nano Dimension and Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension position performs unexpectedly, Quantum 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 Quantum will offset losses from the drop in Quantum's long position.| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
| Quantum vs. NetApp Inc | Quantum vs. Pure Storage | Quantum vs. Super Micro Computer | Quantum vs. Arista Networks |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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