Correlation Between Cricut and Markforged Holding

Can any of the company-specific risk be diversified away by investing in both Cricut and Markforged Holding 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 Cricut and Markforged Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cricut Inc and Markforged Holding Corp, you can compare the effects of market volatilities on Cricut and Markforged Holding 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 Cricut with a short position of Markforged Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Markforged Holding.

Diversification Opportunities for Cricut and Markforged Holding

0.11

Correlation Coefficient

Cricut  Markforged Holding

Average diversification

The 3 months correlation between Cricut and Markforged is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Markforged Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markforged Holding Corp and Cricut 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 Cricut Inc are associated (or correlated) with Markforged Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markforged Holding Corp has no effect on the direction of Cricut i.e., Cricut and Markforged Holding go up and down completely randomly.

Pair Corralation between Cricut and Markforged Holding

Given the investment horizon of 90 days Cricut Inc is expected to generate 0.59 times more return on investment than Markforged Holding. However, Cricut Inc is 1.69 times less risky than Markforged Holding. It trades about 0.28 of its potential returns per unit of risk. Markforged Holding Corp is currently generating about -0.37 per unit of risk. If you would invest  510.00  in Cricut Inc on September 23, 2024 and sell it today you would earn a total of  83.00  from holding Cricut Inc or generate 16.27% return on investment over 90 days.

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

Cricut Inc  vs.  Markforged Holding Corp

Cricut Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cricut Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Markforged Holding Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Markforged Holding Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Markforged Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cricut and Markforged Holding

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

The idea behind Cricut Inc and Markforged Holding Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.