Correlation Between TransAct Technologies and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both TransAct Technologies and Nano Dimension 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 TransAct Technologies and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransAct Technologies Incorporated and Nano Dimension, you can compare the effects of market volatilities on TransAct Technologies and Nano Dimension 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 TransAct Technologies with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransAct Technologies and Nano Dimension.
Diversification Opportunities for TransAct Technologies and Nano Dimension
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TransAct and Nano is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding TransAct Technologies Incorpor and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and TransAct Technologies 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 TransAct Technologies Incorporated are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of TransAct Technologies i.e., TransAct Technologies and Nano Dimension go up and down completely randomly.
Pair Corralation between TransAct Technologies and Nano Dimension
Given the investment horizon of 90 days TransAct Technologies Incorporated is expected to under-perform the Nano Dimension. But the stock apears to be less risky and, when comparing its historical volatility, TransAct Technologies Incorporated is 1.24 times less risky than Nano Dimension. The stock trades about -0.02 of its potential returns per unit of risk. The Nano Dimension is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Nano Dimension on September 7, 2024 and sell it today you would earn a total of 6.00 from holding Nano Dimension or generate 2.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
TransAct Technologies Incorpor vs. Nano Dimension
Performance |
Timeline |
TransAct Technologies |
Nano Dimension |
TransAct Technologies and Nano Dimension Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TransAct Technologies and Nano Dimension
The main advantage of trading using opposite TransAct Technologies and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransAct Technologies position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.TransAct Technologies vs. Western Digital | TransAct Technologies vs. Coca Cola Consolidated | TransAct Technologies vs. SEI Investments | TransAct Technologies vs. Embecta Corp |
Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Fundamental Analysis View fundamental data based on most recent published financial statements |