Correlation Between 3D Systems and Boyd Group

Can any of the company-specific risk be diversified away by investing in both 3D Systems and Boyd Group 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 3D Systems and Boyd Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 3D Systems and Boyd Group Services, you can compare the effects of market volatilities on 3D Systems and Boyd Group 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 3D Systems with a short position of Boyd Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3D Systems and Boyd Group.

Diversification Opportunities for 3D Systems and Boyd Group

0.49

Correlation Coefficient

3D Systems  Boyd Group

Very weak diversification

The 3 months correlation between DDD and Boyd is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding 3D Systems and Boyd Group Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Group Services and 3D Systems 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 3D Systems are associated (or correlated) with Boyd Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Group Services has no effect on the direction of 3D Systems i.e., 3D Systems and Boyd Group go up and down completely randomly.

Pair Corralation between 3D Systems and Boyd Group

Considering the 90-day investment horizon 3D Systems is expected to under-perform the Boyd Group. In addition to that, 3D Systems is 4.13 times more volatile than Boyd Group Services. It trades about -0.04 of its total potential returns per unit of risk. Boyd Group Services is currently generating about -0.01 per unit of volatility. If you would invest  14,961  in Boyd Group Services on December 27, 2024 and sell it today you would lose (249.00) from holding Boyd Group Services or give up 1.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

3D Systems  vs.  Boyd Group Services

3D Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days 3D Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Boyd Group Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boyd Group Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Boyd Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 3D Systems and Boyd Group

The main advantage of trading using opposite 3D Systems and Boyd Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3D Systems position performs unexpectedly, Boyd Group 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 Boyd Group will offset losses from the drop in Boyd Group's long position.

The idea behind 3D Systems and Boyd Group Services 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.