Correlation Between One Stop and Markforged Holding
Can any of the company-specific risk be diversified away by investing in both One Stop and Markforged Holding 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 One Stop and Markforged Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Stop Systems and Markforged Holding Corp, you can compare the effects of market volatilities on One Stop and Markforged Holding 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 One Stop with a short position of Markforged Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Stop and Markforged Holding.
Diversification Opportunities for One Stop and Markforged Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and Markforged is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding One Stop Systems and Markforged Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markforged Holding Corp and One Stop 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 One Stop Systems are associated (or correlated) with Markforged Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markforged Holding Corp has no effect on the direction of One Stop i.e., One Stop and Markforged Holding go up and down completely randomly.
Pair Corralation between One Stop and Markforged Holding
Considering the 90-day investment horizon One Stop is expected to generate 13.94 times less return on investment than Markforged Holding. But when comparing it to its historical volatility, One Stop Systems is 2.35 times less risky than Markforged Holding. It trades about 0.02 of its potential returns per unit of risk. Markforged Holding Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Markforged Holding Corp on September 2, 2024 and sell it today you would earn a total of 169.00 from holding Markforged Holding Corp or generate 73.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Stop Systems vs. Markforged Holding Corp
Performance |
| Timeline |
| One Stop Systems |
| Markforged Holding Corp |
One Stop and Markforged Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Stop and Markforged Holding
The main advantage of trading using opposite One Stop and Markforged Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Stop position performs unexpectedly, Markforged Holding 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 Markforged Holding will offset losses from the drop in Markforged Holding's long position.| One Stop vs. Rigetti Computing | One Stop vs. D Wave Quantum | One Stop vs. Desktop Metal | One Stop vs. Quantum Computing |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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