Correlation Between Nano Dimension and STRC Old
Can any of the company-specific risk be diversified away by investing in both Nano Dimension and STRC Old 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 STRC Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Dimension and STRC Old, you can compare the effects of market volatilities on Nano Dimension and STRC Old 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 STRC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Dimension and STRC Old.
Diversification Opportunities for Nano Dimension and STRC Old
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nano and STRC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and STRC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRC Old 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 STRC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRC Old has no effect on the direction of Nano Dimension i.e., Nano Dimension and STRC Old go up and down completely randomly.
Pair Corralation between Nano Dimension and STRC Old
Given the investment horizon of 90 days Nano Dimension is expected to generate 0.44 times more return on investment than STRC Old. However, Nano Dimension is 2.27 times less risky than STRC Old. It trades about 0.01 of its potential returns per unit of risk. STRC Old is currently generating about -0.09 per unit of risk. If you would invest 219.00 in Nano Dimension on August 27, 2024 and sell it today you would lose (8.00) from holding Nano Dimension or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Nano Dimension vs. STRC Old
Performance |
| Timeline |
| Nano Dimension |
| STRC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nano Dimension and STRC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Dimension and STRC Old
The main advantage of trading using opposite Nano Dimension and STRC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Dimension position performs unexpectedly, STRC Old 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 STRC Old will offset losses from the drop in STRC Old's long position.| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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