Correlation Between 3D Systems and Pure Storage

Can any of the company-specific risk be diversified away by investing in both 3D Systems and Pure Storage 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 3D Systems and Pure Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 3D Systems and Pure Storage, you can compare the effects of market volatilities on 3D Systems and Pure Storage 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 3D Systems with a short position of Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3D Systems and Pure Storage.

Diversification Opportunities for 3D Systems and Pure Storage

0.81

Correlation Coefficient

3D Systems  Pure Storage

Very poor diversification

The 3 months correlation between DDD and Pure is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 3D Systems and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage and 3D Systems 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 3D Systems are associated (or correlated) with Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of 3D Systems i.e., 3D Systems and Pure Storage go up and down completely randomly.

Pair Corralation between 3D Systems and Pure Storage

Considering the 90-day investment horizon 3D Systems is expected to generate 1.28 times more return on investment than Pure Storage. However, 3D Systems is 1.28 times more volatile than Pure Storage. It trades about 0.18 of its potential returns per unit of risk. Pure Storage is currently generating about 0.16 per unit of risk. If you would invest  182.00  in 3D Systems on July 10, 2025 and sell it today you would earn a total of  141.00  from holding 3D Systems or generate 77.47% return on investment over 90 days.

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

3D Systems  vs.  Pure Storage

3D Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 3D Systems are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, 3D Systems exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pure Storage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pure Storage are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Pure Storage reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 3D Systems and Pure Storage

The main advantage of trading using opposite 3D Systems and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3D Systems position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage's long position.

The idea behind 3D Systems and Pure Storage 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.