Correlation Between Stratasys and Radcom
Can any of the company-specific risk be diversified away by investing in both Stratasys and Radcom 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 Stratasys and Radcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Radcom, you can compare the effects of market volatilities on Stratasys and Radcom 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 Stratasys with a short position of Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Radcom.
Diversification Opportunities for Stratasys and Radcom
Weak diversification
The 3 months correlation between Stratasys and Radcom is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom and Stratasys 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 Stratasys are associated (or correlated) with Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Stratasys i.e., Stratasys and Radcom go up and down completely randomly.
Pair Corralation between Stratasys and Radcom
Given the investment horizon of 90 days Stratasys is expected to generate 0.73 times more return on investment than Radcom. However, Stratasys is 1.38 times less risky than Radcom. It trades about -0.28 of its potential returns per unit of risk. Radcom is currently generating about -0.24 per unit of risk. If you would invest 1,149 in Stratasys on January 26, 2024 and sell it today you would lose (162.00) from holding Stratasys or give up 14.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stratasys vs. Radcom
Performance |
| Timeline |
| Stratasys |
| Radcom |
Stratasys and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Radcom
The main advantage of trading using opposite Stratasys and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom's long position.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. DPCM Capital | Stratasys vs. Velo3D Inc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |