Correlation Between Shapeways Holdings, and Ebara

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

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

Diversification Opportunities for Shapeways Holdings, and Ebara

0.0

Correlation Coefficient

Shapeways Holdings,  Ebara

Pay attention - limited upside

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

Pair Corralation between Shapeways Holdings, and Ebara

Given the investment horizon of 90 days Shapeways Holdings, is expected to generate 2.58 times less return on investment than Ebara. But when comparing it to its historical volatility, Shapeways Holdings, Common is 1.04 times less risky than Ebara. It trades about 0.05 of its potential returns per unit of risk. Ebara is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,593  in Ebara on September 28, 2024 and sell it today you would lose (2,393) from holding Ebara or give up 66.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	62.9%
Values	Daily Returns

Shapeways Holdings, Common  vs.  Ebara

Shapeways Holdings,

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Shapeways Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Ebara

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Shapeways Holdings, and Ebara

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

The idea behind Shapeways Holdings, Common and Ebara 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.