Correlation Between Xometry and Rubicon Technologies

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

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

Diversification Opportunities for Xometry and Rubicon Technologies

-0.78

Correlation Coefficient

Xometry  Rubicon Technologies

Pay attention - limited upside

The 3 months correlation between Xometry and Rubicon is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xometry and Rubicon Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubicon Technologies and Xometry 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 Xometry are associated (or correlated) with Rubicon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubicon Technologies has no effect on the direction of Xometry i.e., Xometry and Rubicon Technologies go up and down completely randomly.

Pair Corralation between Xometry and Rubicon Technologies

Given the investment horizon of 90 days Xometry is expected to generate 0.45 times more return on investment than Rubicon Technologies. However, Xometry is 2.21 times less risky than Rubicon Technologies. It trades about 0.04 of its potential returns per unit of risk. Rubicon Technologies is currently generating about -0.05 per unit of risk. If you would invest  2,789  in Xometry on September 28, 2024 and sell it today you would earn a total of  1,677  from holding Xometry or generate 60.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	80.81%
Values	Daily Returns

Xometry  vs.  Rubicon Technologies

Xometry

Risk-Adjusted Performance

25 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Xometry are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Xometry reported solid returns over the last few months and may actually be approaching a breakup point.

Rubicon Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rubicon Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Rubicon Technologies is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Xometry and Rubicon Technologies

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

The idea behind Xometry and Rubicon Technologies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.