Correlation Between Velo3D and 3D Systems
Can any of the company-specific risk be diversified away by investing in both Velo3D and 3D Systems 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 3D Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Velo3D Inc and 3D Systems, you can compare the effects of market volatilities on Velo3D and 3D Systems 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 3D Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Velo3D and 3D Systems.
Diversification Opportunities for Velo3D and 3D Systems
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Velo3D and DDD is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Velo3D Inc and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems 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 3D Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Systems has no effect on the direction of Velo3D i.e., Velo3D and 3D Systems go up and down completely randomly.
Pair Corralation between Velo3D and 3D Systems
Considering the 90-day investment horizon Velo3D Inc is expected to under-perform the 3D Systems. In addition to that, Velo3D is 1.97 times more volatile than 3D Systems. It trades about -0.06 of its total potential returns per unit of risk. 3D Systems is currently generating about -0.06 per unit of volatility. If you would invest 827.00 in 3D Systems on February 3, 2024 and sell it today you would lose (465.00) from holding 3D Systems or give up 56.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Velo3D Inc vs. 3D Systems
Performance |
Timeline |
Velo3D Inc |
3D Systems |
Velo3D and 3D Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Velo3D and 3D Systems
The main advantage of trading using opposite Velo3D and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Velo3D position performs unexpectedly, 3D Systems 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 3D Systems will offset losses from the drop in 3D Systems' long position.Velo3D vs. Nano Dimension | Velo3D vs. 3D Systems | Velo3D vs. Markforged Holding Corp | Velo3D vs. Stratasys |
3D Systems vs. Desktop Metal | 3D Systems vs. Nano Dimension | 3D Systems vs. Velo3D Inc | 3D Systems vs. Markforged Holding Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |