Correlation Between SENSIO Technologies and Stratasys
Can any of the company-specific risk be diversified away by investing in both SENSIO Technologies 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 SENSIO Technologies and Stratasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SENSIO Technologies and Stratasys, you can compare the effects of market volatilities on SENSIO Technologies 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 SENSIO Technologies with a short position of Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENSIO Technologies and Stratasys.
Diversification Opportunities for SENSIO Technologies and Stratasys
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SENSIO and Stratasys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SENSIO Technologies and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys and SENSIO Technologies 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 SENSIO Technologies 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 SENSIO Technologies i.e., SENSIO Technologies and Stratasys go up and down completely randomly.
Pair Corralation between SENSIO Technologies and Stratasys
Assuming the 90 days horizon SENSIO Technologies is expected to under-perform the Stratasys. In addition to that, SENSIO Technologies is 1.7 times more volatile than Stratasys. It trades about -0.05 of its total potential returns per unit of risk. Stratasys is currently generating about -0.04 per unit of volatility. If you would invest 1,783 in Stratasys on September 2, 2024 and sell it today you would lose (821.00) from holding Stratasys or give up 46.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 88.98% |
| Values | Daily Returns |
SENSIO Technologies vs. Stratasys
Performance |
| Timeline |
| SENSIO Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stratasys |
SENSIO Technologies and Stratasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENSIO Technologies and Stratasys
The main advantage of trading using opposite SENSIO Technologies and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENSIO Technologies 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.| SENSIO Technologies vs. Iiot Oxys | SENSIO Technologies vs. AstroNova | SENSIO Technologies vs. Red Cat Holdings | SENSIO Technologies vs. IONQ Inc |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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