Correlation Between Super Micro and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both Super Micro and Nano Dimension 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 Super Micro and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Micro Computer and Nano Dimension, you can compare the effects of market volatilities on Super Micro and Nano Dimension 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 Super Micro with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Nano Dimension.
Diversification Opportunities for Super Micro and Nano Dimension
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Nano is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and Super Micro 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 Super Micro Computer are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Super Micro i.e., Super Micro and Nano Dimension go up and down completely randomly.
Pair Corralation between Super Micro and Nano Dimension
Given the investment horizon of 90 days Super Micro Computer is expected to under-perform the Nano Dimension. In addition to that, Super Micro is 2.42 times more volatile than Nano Dimension. It trades about -0.05 of its total potential returns per unit of risk. Nano Dimension is currently generating about -0.03 per unit of volatility. If you would invest 265.00 in Nano Dimension on August 27, 2024 and sell it today you would lose (37.00) from holding Nano Dimension or give up 13.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Micro Computer vs. Nano Dimension
Performance |
| Timeline |
| Super Micro Computer |
| Nano Dimension |
Super Micro and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Micro and Nano Dimension
The main advantage of trading using opposite Super Micro and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Micro position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.| Super Micro vs. D Wave Quantum | Super Micro vs. Rigetti Computing | Super Micro vs. Cricut Inc | Super Micro vs. Quantum Computing |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |