Correlation Between Stratasys and Intevac
Can any of the company-specific risk be diversified away by investing in both Stratasys and Intevac 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 Intevac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Intevac, you can compare the effects of market volatilities on Stratasys and Intevac 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 Intevac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Intevac.
Diversification Opportunities for Stratasys and Intevac
Pay attention - limited upside
The 3 months correlation between Stratasys and Intevac is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac 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 Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of Stratasys i.e., Stratasys and Intevac go up and down completely randomly.
Pair Corralation between Stratasys and Intevac
Given the investment horizon of 90 days Stratasys is expected to generate 1.15 times more return on investment than Intevac. However, Stratasys is 1.15 times more volatile than Intevac. It trades about 0.25 of its potential returns per unit of risk. Intevac is currently generating about -0.14 per unit of risk. If you would invest 714.00 in Stratasys on August 31, 2024 and sell it today you would earn a total of 241.00 from holding Stratasys or generate 33.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Intevac
Performance |
| Timeline |
| Stratasys |
| Intevac |
Stratasys and Intevac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Intevac
The main advantage of trading using opposite Stratasys and Intevac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Intevac 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 Intevac will offset losses from the drop in Intevac's long position.| Stratasys vs. Dell Technologies | Stratasys vs. RLJ Lodging Trust | Stratasys vs. Aquagold International | Stratasys vs. Stepstone Group |
| Intevac vs. Innovative Solutions and | Intevac vs. Heidrick Struggles International | Intevac vs. ICF International | Intevac vs. PDF Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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