Correlation Between Stratasys and Allient
Can any of the company-specific risk be diversified away by investing in both Stratasys and Allient 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 Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Allient, you can compare the effects of market volatilities on Stratasys and Allient 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 Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Allient.
Diversification Opportunities for Stratasys and Allient
Poor diversification
The 3 months correlation between Stratasys and Allient is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient 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 Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Stratasys i.e., Stratasys and Allient go up and down completely randomly.
Pair Corralation between Stratasys and Allient
Given the investment horizon of 90 days Stratasys is expected to generate 1.27 times more return on investment than Allient. However, Stratasys is 1.27 times more volatile than Allient. It trades about 0.04 of its potential returns per unit of risk. Allient is currently generating about 0.01 per unit of risk. If you would invest 867.00 in Stratasys on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Stratasys or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Allient
Performance |
| Timeline |
| Stratasys |
| Allient |
Stratasys and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Allient
The main advantage of trading using opposite Stratasys and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| Allient vs. Vicor | Allient vs. LSI Industries | Allient vs. Shenzhen Genvict Technologies | Allient vs. Topsec Technologies Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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