Correlation Between 3D Printing and SPAC

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

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

Diversification Opportunities for 3D Printing and SPAC

0.17

Correlation Coefficient

3D Printing  SPAC

Average diversification

The 3 months correlation between PRNT and SPAC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding The 3D Printing and SPAC and New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPAC and New and 3D Printing 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 The 3D Printing are associated (or correlated) with SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPAC and New has no effect on the direction of 3D Printing i.e., 3D Printing and SPAC go up and down completely randomly.

Pair Corralation between 3D Printing and SPAC

Given the investment horizon of 90 days The 3D Printing is expected to generate 2.49 times more return on investment than SPAC. However, 3D Printing is 2.49 times more volatile than SPAC and New. It trades about 0.16 of its potential returns per unit of risk. SPAC and New is currently generating about -0.01 per unit of risk. If you would invest  1,911  in The 3D Printing on September 5, 2024 and sell it today you would earn a total of  251.00  from holding The 3D Printing or generate 13.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

The 3D Printing  vs.  SPAC and New

3D Printing

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The 3D Printing are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, 3D Printing unveiled solid returns over the last few months and may actually be approaching a breakup point.

SPAC and New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SPAC and New has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, SPAC is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 3D Printing and SPAC

The main advantage of trading using opposite 3D Printing and SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3D Printing position performs unexpectedly, SPAC 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 SPAC will offset losses from the drop in SPAC's long position.

The idea behind The 3D Printing and SPAC and New 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.