Correlation Between Stratasys and Alternus Energy
Can any of the company-specific risk be diversified away by investing in both Stratasys and Alternus Energy 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 Stratasys and Alternus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Alternus Energy Group, you can compare the effects of market volatilities on Stratasys and Alternus Energy 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 Stratasys with a short position of Alternus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Alternus Energy.
Diversification Opportunities for Stratasys and Alternus Energy
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stratasys and Alternus is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Alternus Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternus Energy Group and Stratasys 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 Stratasys are associated (or correlated) with Alternus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternus Energy Group has no effect on the direction of Stratasys i.e., Stratasys and Alternus Energy go up and down completely randomly.
Pair Corralation between Stratasys and Alternus Energy
Given the investment horizon of 90 days Stratasys is expected to generate 0.65 times more return on investment than Alternus Energy. However, Stratasys is 1.54 times less risky than Alternus Energy. It trades about 0.04 of its potential returns per unit of risk. Alternus Energy Group is currently generating about -0.24 per unit of risk. If you would invest 867.00 in Stratasys on August 30, 2024 and sell it today you would earn a total of 86.00 from holding Stratasys or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Alternus Energy Group
Performance |
| Timeline |
| Stratasys |
| Alternus Energy Group |
Stratasys and Alternus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Alternus Energy
The main advantage of trading using opposite Stratasys and Alternus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Alternus Energy 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 Alternus Energy will offset losses from the drop in Alternus Energy's long position.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| Alternus Energy vs. Atlantica Sustainable Infrastructure | Alternus Energy vs. Verde Clean Fuels | Alternus Energy vs. ReNew Energy Global | Alternus Energy vs. Ellomay Capital |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |