Correlation Between STRC Old and Markforged Holding

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

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

Diversification Opportunities for STRC Old and Markforged Holding

0.0

Correlation Coefficient

STRC Old  Markforged Holding

Pay attention - limited upside

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

Pair Corralation between STRC Old and Markforged Holding

If you would invest  314.00  in Markforged Holding Corp on December 29, 2024 and sell it today you would earn a total of  149.00  from holding Markforged Holding Corp or generate 47.45% return on investment over 90 days.

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

STRC Old  vs.  Markforged Holding Corp

STRC Old

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with STRC Old and Markforged Holding

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

The idea behind STRC Old and Markforged Holding Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.