Correlation Between Stratasys and United Community
Can any of the company-specific risk be diversified away by investing in both Stratasys and United Community 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 United Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and United Community Banks,, you can compare the effects of market volatilities on Stratasys and United Community 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 United Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and United Community.
Diversification Opportunities for Stratasys and United Community
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stratasys and United is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and United Community Banks, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Community Banks, 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 United Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Community Banks, has no effect on the direction of Stratasys i.e., Stratasys and United Community go up and down completely randomly.
Pair Corralation between Stratasys and United Community
Given the investment horizon of 90 days Stratasys is expected to under-perform the United Community. In addition to that, Stratasys is 1.58 times more volatile than United Community Banks,. It trades about -0.01 of its total potential returns per unit of risk. United Community Banks, is currently generating about 0.03 per unit of volatility. If you would invest 2,498 in United Community Banks, on December 6, 2024 and sell it today you would earn a total of 491.00 from holding United Community Banks, or generate 19.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Stratasys vs. United Community Banks,
Performance |
| Timeline |
| Stratasys |
| United Community Banks, |
Stratasys and United Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and United Community
The main advantage of trading using opposite Stratasys and United Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, United Community 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 United Community will offset losses from the drop in United Community's long position.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| United Community vs. Space Communication | United Community vs. WK Kellogg Co | United Community vs. BBB Foods | United Community vs. Iridium Communications |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |