Correlation Between Nano Dimension and Quantum

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

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

Diversification Opportunities for Nano Dimension and Quantum

0.56

Correlation Coefficient

Nano Dimension  Quantum

Very weak diversification

The 3 months correlation between Nano and Quantum is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nano Dimension and Quantum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum and Nano Dimension 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 Nano Dimension are associated (or correlated) with Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum has no effect on the direction of Nano Dimension i.e., Nano Dimension and Quantum go up and down completely randomly.

Pair Corralation between Nano Dimension and Quantum

Given the investment horizon of 90 days Nano Dimension is expected to generate 0.26 times more return on investment than Quantum. However, Nano Dimension is 3.81 times less risky than Quantum. It trades about -0.15 of its potential returns per unit of risk. Quantum is currently generating about -0.12 per unit of risk. If you would invest  257.00  in Nano Dimension on December 27, 2024 and sell it today you would lose (79.00) from holding Nano Dimension or give up 30.74% of portfolio value over 90 days.

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

Nano Dimension  vs.  Quantum

Nano Dimension

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nano Dimension 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Quantum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quantum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Nano Dimension and Quantum

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

The idea behind Nano Dimension and Quantum 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.