Correlation Between SMC Corp and Shapeways Holdings,

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

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

Diversification Opportunities for SMC Corp and Shapeways Holdings,

0.28

Correlation Coefficient

SMC Corp  Shapeways Holdings,

Modest diversification

The 3 months correlation between SMC and Shapeways is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SMC Corp and Shapeways Holdings, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapeways Holdings, and SMC Corp 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 SMC Corp 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 SMC Corp i.e., SMC Corp and Shapeways Holdings, go up and down completely randomly.

Pair Corralation between SMC Corp and Shapeways Holdings,

Assuming the 90 days horizon SMC Corp is expected to under-perform the Shapeways Holdings,. But the pink sheet apears to be less risky and, when comparing its historical volatility, SMC Corp is 61.54 times less risky than Shapeways Holdings,. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Shapeways Holdings, Common is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Shapeways Holdings, Common on September 24, 2024 and sell it today you would lose  0.00  from holding Shapeways Holdings, Common or give up 0.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

SMC Corp  vs.  Shapeways Holdings, Common

SMC Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SMC Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, SMC Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Shapeways Holdings,

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Shapeways Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SMC Corp and Shapeways Holdings,

The main advantage of trading using opposite SMC Corp and Shapeways Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMC Corp 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 SMC Corp 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.