Correlation Between Shapeways Holdings, and SMC Corp

Can any of the company-specific risk be diversified away by investing in both Shapeways Holdings, and SMC Corp 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 SMC Corp 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 SMC Corp Japan, you can compare the effects of market volatilities on Shapeways Holdings, and SMC Corp 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 SMC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapeways Holdings, and SMC Corp.

Diversification Opportunities for Shapeways Holdings, and SMC Corp

0.28

Correlation Coefficient

Shapeways Holdings,  SMC Corp

Modest diversification

The 3 months correlation between Shapeways and SMC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and SMC Corp Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMC Corp Japan 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 SMC Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMC Corp Japan has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and SMC Corp go up and down completely randomly.

Pair Corralation between Shapeways Holdings, and SMC Corp

Given the investment horizon of 90 days Shapeways Holdings, Common is expected to under-perform the SMC Corp. In addition to that, Shapeways Holdings, is 6.25 times more volatile than SMC Corp Japan. It trades about -0.22 of its total potential returns per unit of risk. SMC Corp Japan is currently generating about -0.25 per unit of volatility. If you would invest  2,162  in SMC Corp Japan on September 23, 2024 and sell it today you would lose (193.00) from holding SMC Corp Japan or give up 8.93% of portfolio value over 90 days.

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

Shapeways Holdings, Common  vs.  SMC Corp Japan

Shapeways Holdings,

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 13 (%) 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.

SMC Corp Japan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SMC Corp Japan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Shapeways Holdings, and SMC Corp

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

The idea behind Shapeways Holdings, Common and SMC Corp Japan 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 Stocks Directory module to find actively traded stocks across global markets.