Correlation Between One Stop and Stratasys
Can any of the company-specific risk be diversified away by investing in both One Stop and Stratasys 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 Stratasys 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 Stratasys, you can compare the effects of market volatilities on One Stop and Stratasys 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 Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Stop and Stratasys.
Diversification Opportunities for One Stop and Stratasys
Significant diversification
The 3 months correlation between One and Stratasys is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding One Stop Systems and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys 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 Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of One Stop i.e., One Stop and Stratasys go up and down completely randomly.
Pair Corralation between One Stop and Stratasys
Considering the 90-day investment horizon One Stop Systems is expected to generate 1.47 times more return on investment than Stratasys. However, One Stop is 1.47 times more volatile than Stratasys. It trades about 0.01 of its potential returns per unit of risk. Stratasys is currently generating about 0.0 per unit of risk. If you would invest 302.00 in One Stop Systems on September 2, 2024 and sell it today you would lose (65.00) from holding One Stop Systems or give up 21.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Stop Systems vs. Stratasys
Performance |
| Timeline |
| One Stop Systems |
| Stratasys |
One Stop and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Stop and Stratasys
The main advantage of trading using opposite One Stop and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Stop position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' long position.| One Stop vs. Rigetti Computing | One Stop vs. D Wave Quantum | One Stop vs. Desktop Metal | One Stop vs. Quantum Computing |
| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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