Correlation Between Stratasys and Lagardere
Can any of the company-specific risk be diversified away by investing in both Stratasys and Lagardere 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 Lagardere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Lagardere SA, you can compare the effects of market volatilities on Stratasys and Lagardere 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 Lagardere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Lagardere.
Diversification Opportunities for Stratasys and Lagardere
Excellent diversification
The 3 months correlation between Stratasys and Lagardere is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Lagardere SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lagardere SA 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 Lagardere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lagardere SA has no effect on the direction of Stratasys i.e., Stratasys and Lagardere go up and down completely randomly.
Pair Corralation between Stratasys and Lagardere
Given the investment horizon of 90 days Stratasys is expected to generate 2.11 times more return on investment than Lagardere. However, Stratasys is 2.11 times more volatile than Lagardere SA. It trades about 0.01 of its potential returns per unit of risk. Lagardere SA is currently generating about 0.03 per unit of risk. If you would invest 1,120 in Stratasys on September 14, 2024 and sell it today you would lose (41.00) from holding Stratasys or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 67.0% |
| Values | Daily Returns |
Stratasys vs. Lagardere SA
Performance |
| Timeline |
| Stratasys |
| Lagardere SA |
Stratasys and Lagardere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Lagardere
The main advantage of trading using opposite Stratasys and Lagardere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Lagardere 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 Lagardere will offset losses from the drop in Lagardere's long position.| Stratasys vs. Rigetti Computing | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal | Stratasys vs. Quantum Computing |
| Lagardere vs. Stratasys | Lagardere vs. Zoom Video Communications | Lagardere vs. Iridium Communications | Lagardere vs. Eldorado Gold Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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