Correlation Between Stratasys and Markforged Holding
Can any of the company-specific risk be diversified away by investing in both Stratasys and Markforged Holding 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 Markforged Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Markforged Holding Corp, you can compare the effects of market volatilities on Stratasys and Markforged Holding 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 Markforged Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Markforged Holding.
Diversification Opportunities for Stratasys and Markforged Holding
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stratasys and Markforged is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Markforged Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markforged Holding Corp 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 Markforged Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markforged Holding Corp has no effect on the direction of Stratasys i.e., Stratasys and Markforged Holding go up and down completely randomly.
Pair Corralation between Stratasys and Markforged Holding
Given the investment horizon of 90 days Stratasys is expected to under-perform the Markforged Holding. But the stock apears to be less risky and, when comparing its historical volatility, Stratasys is 2.21 times less risky than Markforged Holding. The stock trades about -0.03 of its potential returns per unit of risk. The Markforged Holding Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,010 in Markforged Holding Corp on August 27, 2024 and sell it today you would lose (572.00) from holding Markforged Holding Corp or give up 56.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Markforged Holding Corp
Performance |
| Timeline |
| Stratasys |
| Markforged Holding Corp |
Stratasys and Markforged Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Markforged Holding
The main advantage of trading using opposite Stratasys and Markforged Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Markforged Holding 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 Markforged Holding will offset losses from the drop in Markforged Holding's long position.| Stratasys vs. D Wave Quantum | Stratasys vs. Rigetti Computing | Stratasys vs. Cricut Inc | Stratasys vs. Quantum Computing |
| Markforged Holding vs. Stratasys | Markforged Holding vs. Desktop Metal | Markforged Holding vs. 3D Systems | Markforged Holding vs. Nano Dimension |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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