Correlation Between Xometry and Camber Energy
Can any of the company-specific risk be diversified away by investing in both Xometry and Camber Energy 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 Xometry and Camber Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xometry and Camber Energy, you can compare the effects of market volatilities on Xometry and Camber Energy 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 Xometry with a short position of Camber Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xometry and Camber Energy.
Diversification Opportunities for Xometry and Camber Energy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xometry and Camber is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xometry and Camber Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camber Energy and Xometry 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 Xometry are associated (or correlated) with Camber Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camber Energy has no effect on the direction of Xometry i.e., Xometry and Camber Energy go up and down completely randomly.
Pair Corralation between Xometry and Camber Energy
Given the investment horizon of 90 days Xometry is expected to generate 0.64 times more return on investment than Camber Energy. However, Xometry is 1.57 times less risky than Camber Energy. It trades about 0.02 of its potential returns per unit of risk. Camber Energy is currently generating about -0.09 per unit of risk. If you would invest 4,008 in Xometry on August 28, 2024 and sell it today you would lose (737.00) from holding Xometry or give up 18.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xometry vs. Camber Energy
Performance |
| Timeline |
| Xometry |
| Camber Energy |
Xometry and Camber Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xometry and Camber Energy
The main advantage of trading using opposite Xometry and Camber Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xometry position performs unexpectedly, Camber Energy 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 Camber Energy will offset losses from the drop in Camber Energy's long position.The idea behind Xometry and Camber Energy 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.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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