Correlation Between Richtech Robotics and Xometry
Can any of the company-specific risk be diversified away by investing in both Richtech Robotics and Xometry 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 Richtech Robotics and Xometry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Richtech Robotics Class and Xometry, you can compare the effects of market volatilities on Richtech Robotics and Xometry 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 Richtech Robotics with a short position of Xometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Richtech Robotics and Xometry.
Diversification Opportunities for Richtech Robotics and Xometry
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Richtech and Xometry is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Richtech Robotics Class and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry and Richtech Robotics 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 Richtech Robotics Class are associated (or correlated) with Xometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xometry has no effect on the direction of Richtech Robotics i.e., Richtech Robotics and Xometry go up and down completely randomly.
Pair Corralation between Richtech Robotics and Xometry
Allowing for the 90-day total investment horizon Richtech Robotics Class is expected to under-perform the Xometry. But the stock apears to be less risky and, when comparing its historical volatility, Richtech Robotics Class is 1.24 times less risky than Xometry. The stock trades about -0.13 of its potential returns per unit of risk. The Xometry is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,997 in Xometry on August 28, 2024 and sell it today you would earn a total of 1,274 from holding Xometry or generate 63.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Richtech Robotics Class vs. Xometry
Performance |
| Timeline |
| Richtech Robotics Class |
| Xometry |
Richtech Robotics and Xometry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Richtech Robotics and Xometry
The main advantage of trading using opposite Richtech Robotics and Xometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richtech Robotics position performs unexpectedly, Xometry 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 Xometry will offset losses from the drop in Xometry's long position.| Richtech Robotics vs. Aquagold International | Richtech Robotics vs. Morningstar Unconstrained Allocation | Richtech Robotics vs. High Yield Municipal Fund | Richtech Robotics vs. Thrivent High Yield |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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