Correlation Between Stratasys and ALEFARM BREWING
Can any of the company-specific risk be diversified away by investing in both Stratasys and ALEFARM BREWING 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 Stratasys and ALEFARM BREWING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and ALEFARM BREWING DK 05, you can compare the effects of market volatilities on Stratasys and ALEFARM BREWING 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 Stratasys with a short position of ALEFARM BREWING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and ALEFARM BREWING.
Diversification Opportunities for Stratasys and ALEFARM BREWING
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stratasys and ALEFARM is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and ALEFARM BREWING DK 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEFARM BREWING DK and Stratasys 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 Stratasys are associated (or correlated) with ALEFARM BREWING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEFARM BREWING DK has no effect on the direction of Stratasys i.e., Stratasys and ALEFARM BREWING go up and down completely randomly.
Pair Corralation between Stratasys and ALEFARM BREWING
Assuming the 90 days horizon Stratasys is expected to generate 1.13 times more return on investment than ALEFARM BREWING. However, Stratasys is 1.13 times more volatile than ALEFARM BREWING DK 05. It trades about 0.11 of its potential returns per unit of risk. ALEFARM BREWING DK 05 is currently generating about 0.0 per unit of risk. If you would invest 890.00 in Stratasys on November 18, 2024 and sell it today you would earn a total of 235.00 from holding Stratasys or generate 26.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Stratasys vs. ALEFARM BREWING DK 05
Performance |
Timeline |
Stratasys |
ALEFARM BREWING DK |
Stratasys and ALEFARM BREWING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stratasys and ALEFARM BREWING
The main advantage of trading using opposite Stratasys and ALEFARM BREWING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, ALEFARM BREWING 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 ALEFARM BREWING will offset losses from the drop in ALEFARM BREWING's long position.Stratasys vs. Fast Retailing Co | ||
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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