Correlation Between Stratasys and Ebang International
Can any of the company-specific risk be diversified away by investing in both Stratasys and Ebang International 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 Ebang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Ebang International Holdings, you can compare the effects of market volatilities on Stratasys and Ebang International 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 Ebang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Ebang International.
Diversification Opportunities for Stratasys and Ebang International
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stratasys and Ebang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Ebang International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebang International 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 Ebang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebang International has no effect on the direction of Stratasys i.e., Stratasys and Ebang International go up and down completely randomly.
Pair Corralation between Stratasys and Ebang International
Given the investment horizon of 90 days Stratasys is expected to under-perform the Ebang International. But the stock apears to be less risky and, when comparing its historical volatility, Stratasys is 2.12 times less risky than Ebang International. The stock trades about 0.0 of its potential returns per unit of risk. The Ebang International Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 483.00 in Ebang International Holdings on August 27, 2024 and sell it today you would earn a total of 254.00 from holding Ebang International Holdings or generate 52.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Ebang International Holdings
Performance |
| Timeline |
| Stratasys |
| Ebang International |
Stratasys and Ebang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Ebang International
The main advantage of trading using opposite Stratasys and Ebang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Ebang International 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 Ebang International will offset losses from the drop in Ebang International's long position.| Stratasys vs. D Wave Quantum | Stratasys vs. Rigetti Computing | Stratasys vs. Cricut Inc | Stratasys vs. Quantum Computing |
| Ebang International vs. Plexus Corp | Ebang International vs. Jabil Circuit | Ebang International vs. Sanmina | Ebang International vs. Methode Electronics |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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