Correlation Between Stratasys and Greenlane Renewables
Can any of the company-specific risk be diversified away by investing in both Stratasys and Greenlane Renewables 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 Greenlane Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Greenlane Renewables, you can compare the effects of market volatilities on Stratasys and Greenlane Renewables 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 Greenlane Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Greenlane Renewables.
Diversification Opportunities for Stratasys and Greenlane Renewables
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stratasys and Greenlane is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Greenlane Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Renewables 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 Greenlane Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlane Renewables has no effect on the direction of Stratasys i.e., Stratasys and Greenlane Renewables go up and down completely randomly.
Pair Corralation between Stratasys and Greenlane Renewables
Given the investment horizon of 90 days Stratasys is expected to generate 0.54 times more return on investment than Greenlane Renewables. However, Stratasys is 1.84 times less risky than Greenlane Renewables. It trades about -0.01 of its potential returns per unit of risk. Greenlane Renewables is currently generating about -0.03 per unit of risk. If you would invest 1,382 in Stratasys on November 2, 2024 and sell it today you would lose (449.00) from holding Stratasys or give up 32.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Stratasys vs. Greenlane Renewables
Performance |
| Timeline |
| Stratasys |
| Greenlane Renewables |
Stratasys and Greenlane Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Greenlane Renewables
The main advantage of trading using opposite Stratasys and Greenlane Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Greenlane Renewables 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 Greenlane Renewables will offset losses from the drop in Greenlane Renewables' long position.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| Greenlane Renewables vs. Euro Tech Holdings | Greenlane Renewables vs. China Natural Resources | Greenlane Renewables vs. Fuel Tech | Greenlane Renewables vs. Vow ASA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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