Correlation Between Velo3D and Technology Fund

Can any of the company-specific risk be diversified away by investing in both Velo3D and Technology Fund 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 Velo3D and Technology Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Velo3D Inc and Technology Fund Investor, you can compare the effects of market volatilities on Velo3D and Technology Fund 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 Velo3D with a short position of Technology Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Velo3D and Technology Fund.

Diversification Opportunities for Velo3D and Technology Fund

0.0

Correlation Coefficient

Velo3D  Technology Fund

Pay attention - limited upside

The 3 months correlation between Velo3D and Technology is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Velo3D Inc and Technology Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology Fund Investor and Velo3D 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 Velo3D Inc are associated (or correlated) with Technology Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology Fund Investor has no effect on the direction of Velo3D i.e., Velo3D and Technology Fund go up and down completely randomly.

Pair Corralation between Velo3D and Technology Fund

If you would invest (100.00) in Velo3D Inc on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Velo3D Inc or generate -100.0% return on investment over 90 days.

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

Velo3D Inc  vs.  Technology Fund Investor

Velo3D Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Velo3D Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Velo3D is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Technology Fund Investor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Technology Fund Investor has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Velo3D and Technology Fund

The main advantage of trading using opposite Velo3D and Technology Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Velo3D position performs unexpectedly, Technology Fund 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 Technology Fund will offset losses from the drop in Technology Fund's long position.

The idea behind Velo3D Inc and Technology Fund Investor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.