Correlation Between Velo3D and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both Velo3D and Nano Dimension 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 Velo3D and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Velo3D Inc and Nano Dimension, you can compare the effects of market volatilities on Velo3D and Nano Dimension 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 Velo3D with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of Velo3D and Nano Dimension.
Diversification Opportunities for Velo3D and Nano Dimension
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Velo3D and Nano is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Velo3D Inc and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and Velo3D 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 Velo3D Inc are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Velo3D i.e., Velo3D and Nano Dimension go up and down completely randomly.
Pair Corralation between Velo3D and Nano Dimension
Considering the 90-day investment horizon Velo3D Inc is expected to under-perform the Nano Dimension. In addition to that, Velo3D is 3.32 times more volatile than Nano Dimension. It trades about -0.08 of its total potential returns per unit of risk. Nano Dimension is currently generating about 0.0 per unit of volatility. If you would invest 240.00 in Nano Dimension on August 27, 2024 and sell it today you would lose (29.00) from holding Nano Dimension or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.67% |
| Values | Daily Returns |
Velo3D Inc vs. Nano Dimension
Performance |
| Timeline |
| Velo3D Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Nano Dimension |
Velo3D and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Velo3D and Nano Dimension
The main advantage of trading using opposite Velo3D and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Velo3D position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.The idea behind Velo3D Inc and Nano Dimension pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |