Correlation Between O2Micro International and Desktop Metal
Can any of the company-specific risk be diversified away by investing in both O2Micro International and Desktop Metal 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 O2Micro International and Desktop Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between O2Micro International Limited and Desktop Metal, you can compare the effects of market volatilities on O2Micro International and Desktop Metal 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 O2Micro International with a short position of Desktop Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of O2Micro International and Desktop Metal.
Diversification Opportunities for O2Micro International and Desktop Metal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between O2Micro and Desktop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding O2Micro International Limited and Desktop Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desktop Metal and O2Micro International 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 O2Micro International Limited are associated (or correlated) with Desktop Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desktop Metal has no effect on the direction of O2Micro International i.e., O2Micro International and Desktop Metal go up and down completely randomly.
Pair Corralation between O2Micro International and Desktop Metal
If you would invest 496.00 in Desktop Metal on October 16, 2025 and sell it today you would earn a total of 0.00 from holding Desktop Metal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
O2Micro International Limited vs. Desktop Metal
Performance |
| Timeline |
| O2Micro International |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Desktop Metal |
Risk-Adjusted Performance
Weakest
Weak | Strong |
O2Micro International and Desktop Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with O2Micro International and Desktop Metal
The main advantage of trading using opposite O2Micro International and Desktop Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if O2Micro International position performs unexpectedly, Desktop Metal 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 Desktop Metal will offset losses from the drop in Desktop Metal's long position.| O2Micro International vs. Climb Global Solutions | O2Micro International vs. DeFi Development Corp | O2Micro International vs. Tingo Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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