Correlation Between Ageagle Aerial and 3D Systems
Can any of the company-specific risk be diversified away by investing in both Ageagle Aerial and 3D Systems 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 Ageagle Aerial and 3D Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ageagle Aerial Systems and 3D Systems, you can compare the effects of market volatilities on Ageagle Aerial and 3D Systems 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 Ageagle Aerial with a short position of 3D Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageagle Aerial and 3D Systems.
Diversification Opportunities for Ageagle Aerial and 3D Systems
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ageagle and DDD is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ageagle Aerial Systems and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems and Ageagle Aerial 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 Ageagle Aerial Systems are associated (or correlated) with 3D Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Systems has no effect on the direction of Ageagle Aerial i.e., Ageagle Aerial and 3D Systems go up and down completely randomly.
Pair Corralation between Ageagle Aerial and 3D Systems
Given the investment horizon of 90 days Ageagle Aerial Systems is expected to generate 4.56 times more return on investment than 3D Systems. However, Ageagle Aerial is 4.56 times more volatile than 3D Systems. It trades about 0.15 of its potential returns per unit of risk. 3D Systems is currently generating about 0.1 per unit of risk. If you would invest 222.00 in Ageagle Aerial Systems on August 24, 2024 and sell it today you would earn a total of 92.92 from holding Ageagle Aerial Systems or generate 41.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ageagle Aerial Systems vs. 3D Systems
Performance |
| Timeline |
| Ageagle Aerial Systems |
| 3D Systems |
Ageagle Aerial and 3D Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageagle Aerial and 3D Systems
The main advantage of trading using opposite Ageagle Aerial and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageagle Aerial position performs unexpectedly, 3D Systems 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 3D Systems will offset losses from the drop in 3D Systems' long position.| Ageagle Aerial vs. Ehang Holdings | Ageagle Aerial vs. Vislink Technologies | Ageagle Aerial vs. Foresight Autonomous Holdings |
| 3D Systems vs. Desktop Metal | 3D Systems vs. Nano Dimension | 3D Systems vs. Markforged Holding Corp | 3D Systems vs. Stratasys |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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