Correlation Between Xometry and Ingersoll Rand
Can any of the company-specific risk be diversified away by investing in both Xometry and Ingersoll Rand 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 Ingersoll Rand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xometry and Ingersoll Rand, you can compare the effects of market volatilities on Xometry and Ingersoll Rand 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 Ingersoll Rand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xometry and Ingersoll Rand.
Diversification Opportunities for Xometry and Ingersoll Rand
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xometry and Ingersoll is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Xometry and Ingersoll Rand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingersoll Rand 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 Ingersoll Rand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingersoll Rand has no effect on the direction of Xometry i.e., Xometry and Ingersoll Rand go up and down completely randomly.
Pair Corralation between Xometry and Ingersoll Rand
Given the investment horizon of 90 days Xometry is expected to under-perform the Ingersoll Rand. In addition to that, Xometry is 2.44 times more volatile than Ingersoll Rand. It trades about -0.28 of its total potential returns per unit of risk. Ingersoll Rand is currently generating about 0.04 per unit of volatility. If you would invest 9,046 in Ingersoll Rand on November 1, 2024 and sell it today you would earn a total of 74.00 from holding Ingersoll Rand or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Xometry vs. Ingersoll Rand
Performance |
| Timeline |
| Xometry |
| Ingersoll Rand |
Xometry and Ingersoll Rand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xometry and Ingersoll Rand
The main advantage of trading using opposite Xometry and Ingersoll Rand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xometry position performs unexpectedly, Ingersoll Rand 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 Ingersoll Rand will offset losses from the drop in Ingersoll Rand's long position.The idea behind Xometry and Ingersoll Rand 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.| Ingersoll Rand vs. Aquagold International | Ingersoll Rand vs. Morningstar Unconstrained Allocation | Ingersoll Rand vs. Thrivent High Yield | Ingersoll Rand vs. High Yield Municipal Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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