Correlation Between Stratasys and Tesla
Can any of the company-specific risk be diversified away by investing in both Stratasys and Tesla 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 Tesla into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Tesla Inc, you can compare the effects of market volatilities on Stratasys and Tesla 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 Tesla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Tesla.
Diversification Opportunities for Stratasys and Tesla
Very good diversification
The 3 months correlation between Stratasys and Tesla is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc 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 Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of Stratasys i.e., Stratasys and Tesla go up and down completely randomly.
Pair Corralation between Stratasys and Tesla
Given the investment horizon of 90 days Stratasys is expected to generate 1.65 times more return on investment than Tesla. However, Stratasys is 1.65 times more volatile than Tesla Inc. It trades about 0.11 of its potential returns per unit of risk. Tesla Inc is currently generating about -0.42 per unit of risk. If you would invest 968.00 in Stratasys on November 29, 2024 and sell it today you would earn a total of 102.00 from holding Stratasys or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Tesla Inc
Performance |
| Timeline |
| Stratasys |
| Tesla Inc |
Stratasys and Tesla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Tesla
The main advantage of trading using opposite Stratasys and Tesla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Tesla 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 Tesla will offset losses from the drop in Tesla's long position.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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