Correlation Between Cricut and Stratasys

Can any of the company-specific risk be diversified away by investing in both Cricut and Stratasys 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 Cricut and Stratasys into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cricut Inc and Stratasys, you can compare the effects of market volatilities on Cricut and Stratasys 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 Cricut with a short position of Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Stratasys.

Diversification Opportunities for Cricut and Stratasys

0.05

Correlation Coefficient

Cricut  Stratasys

Significant diversification

The 3 months correlation between Cricut and Stratasys is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys and Cricut 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 Cricut Inc are associated (or correlated) with Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of Cricut i.e., Cricut and Stratasys go up and down completely randomly.

Pair Corralation between Cricut and Stratasys

Given the investment horizon of 90 days Cricut Inc is expected to under-perform the Stratasys. But the stock apears to be less risky and, when comparing its historical volatility, Cricut Inc is 1.71 times less risky than Stratasys. The stock trades about -0.04 of its potential returns per unit of risk. The Stratasys is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  915.00  in Stratasys on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Stratasys or generate 10.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cricut Inc  vs.  Stratasys

Cricut Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cricut Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Cricut is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Stratasys

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stratasys are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Stratasys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cricut and Stratasys

The main advantage of trading using opposite Cricut and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' long position.

The idea behind Cricut Inc and Stratasys 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.