Correlation Between Fathom Digital and Shapeways Holdings,

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

By analyzing existing cross correlation between Fathom Digital Manufacturing and Shapeways Holdings, Common, you can compare the effects of market volatilities on Fathom Digital and Shapeways Holdings, 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 Fathom Digital with a short position of Shapeways Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fathom Digital and Shapeways Holdings,.

Diversification Opportunities for Fathom Digital and Shapeways Holdings,

-0.1

Correlation Coefficient

Fathom Digital  Shapeways Holdings,

Good diversification

The 3 months correlation between Fathom and Shapeways is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fathom Digital Manufacturing and Shapeways Holdings, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapeways Holdings, and Fathom Digital 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 Fathom Digital Manufacturing are associated (or correlated) with Shapeways Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shapeways Holdings, has no effect on the direction of Fathom Digital i.e., Fathom Digital and Shapeways Holdings, go up and down completely randomly.

Pair Corralation between Fathom Digital and Shapeways Holdings,

If you would invest  0.00  in Shapeways Holdings, Common on September 3, 2024 and sell it today you would earn a total of  0.02  from holding Shapeways Holdings, Common or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Fathom Digital Manufacturing  vs.  Shapeways Holdings, Common

Fathom Digital Manuf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fathom Digital Manufacturing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Fathom Digital is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Shapeways Holdings,

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 14 (%) 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.

Pair Trading with Fathom Digital and Shapeways Holdings,

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

The idea behind Fathom Digital Manufacturing and Shapeways Holdings, Common 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.