Correlation Between Markforged Holding and Velo3D

Can any of the company-specific risk be diversified away by investing in both Markforged Holding and Velo3D 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 Markforged Holding and Velo3D into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Markforged Holding Corp and Velo3D Inc, you can compare the effects of market volatilities on Markforged Holding and Velo3D 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 Markforged Holding with a short position of Velo3D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Markforged Holding and Velo3D.

Diversification Opportunities for Markforged Holding and Velo3D

0.0

Correlation Coefficient

Markforged Holding  Velo3D

Pay attention - limited upside

The 3 months correlation between Markforged and Velo3D is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Markforged Holding Corp and Velo3D Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Velo3D Inc and Markforged Holding 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 Markforged Holding Corp are associated (or correlated) with Velo3D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Velo3D Inc has no effect on the direction of Markforged Holding i.e., Markforged Holding and Velo3D go up and down completely randomly.

Pair Corralation between Markforged Holding and Velo3D

If you would invest  314.00  in Markforged Holding Corp on December 29, 2024 and sell it today you would earn a total of  143.00  from holding Markforged Holding Corp or generate 45.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Markforged Holding Corp  vs.  Velo3D Inc

Markforged Holding Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Markforged Holding Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Markforged Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Velo3D Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Velo3D Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Velo3D is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Markforged Holding and Velo3D

The main advantage of trading using opposite Markforged Holding and Velo3D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Markforged Holding position performs unexpectedly, Velo3D 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 Velo3D will offset losses from the drop in Velo3D's long position.

The idea behind Markforged Holding Corp and Velo3D Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.