Correlation Between FUJIFILM Holdings and 3D Systems

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

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

Diversification Opportunities for FUJIFILM Holdings and 3D Systems

-0.8

Correlation Coefficient

FUJIFILM Holdings  3D Systems

Pay attention - limited upside

The 3 months correlation between FUJIFILM and DDD is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding FUJIFILM Holdings Corp and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems and FUJIFILM 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 FUJIFILM Holdings Corp 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 FUJIFILM Holdings i.e., FUJIFILM Holdings and 3D Systems go up and down completely randomly.

Pair Corralation between FUJIFILM Holdings and 3D Systems

If you would invest  345.00  in 3D Systems on February 28, 2024 and sell it today you would earn a total of  5.00  from holding 3D Systems or generate 1.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

FUJIFILM Holdings Corp  vs.  3D Systems

FUJIFILM Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Strong

Over the last 90 days FUJIFILM Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak forward indicators, FUJIFILM Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

3D Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 3D Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with FUJIFILM Holdings and 3D Systems

The main advantage of trading using opposite FUJIFILM Holdings and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUJIFILM Holdings 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.

The idea behind FUJIFILM Holdings Corp and 3D Systems 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.