Correlation Between Shapeways Holdings, and Laser Photonics

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

Diversification Opportunities for Shapeways Holdings, and Laser Photonics

0.02

Correlation Coefficient

Shapeways Holdings,  Laser Photonics

Significant diversification

The 3 months correlation between Shapeways and Laser is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and Laser Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laser Photonics 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 Laser Photonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laser Photonics has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and Laser Photonics go up and down completely randomly.

Pair Corralation between Shapeways Holdings, and Laser Photonics

Given the investment horizon of 90 days Shapeways Holdings, Common is expected to generate 3.07 times more return on investment than Laser Photonics. However, Shapeways Holdings, is 3.07 times more volatile than Laser Photonics. It trades about 0.06 of its potential returns per unit of risk. Laser Photonics is currently generating about -0.1 per unit of risk. If you would invest  0.01  in Shapeways Holdings, Common on March 8, 2025 and sell it today you would earn a total of  0.00  from holding Shapeways Holdings, Common or generate 0.0% return on investment over 90 days.

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

Shapeways Holdings, Common  vs.  Laser Photonics

Shapeways Holdings,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 4 (%) 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.

Laser Photonics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Laser Photonics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Shapeways Holdings, and Laser Photonics

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

The idea behind Shapeways Holdings, Common and Laser Photonics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.