Correlation Between Network 1 and Xometry

Can any of the company-specific risk be diversified away by investing in both Network 1 and Xometry 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 Network 1 and Xometry into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Network 1 Technologies and Xometry, you can compare the effects of market volatilities on Network 1 and Xometry 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 Network 1 with a short position of Xometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network 1 and Xometry.

Diversification Opportunities for Network 1 and Xometry

0.02

Correlation Coefficient

Network 1  Xometry

Significant diversification

The 3 months correlation between Network and Xometry is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Network 1 Technologies and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry and Network 1 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 Network 1 Technologies are associated (or correlated) with Xometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xometry has no effect on the direction of Network 1 i.e., Network 1 and Xometry go up and down completely randomly.

Pair Corralation between Network 1 and Xometry

Given the investment horizon of 90 days Network 1 Technologies is expected to generate 0.69 times more return on investment than Xometry. However, Network 1 Technologies is 1.45 times less risky than Xometry. It trades about 0.11 of its potential returns per unit of risk. Xometry is currently generating about 0.02 per unit of risk. If you would invest  123.00  in Network 1 Technologies on May 6, 2025 and sell it today you would earn a total of  19.00  from holding Network 1 Technologies or generate 15.45% return on investment over 90 days.

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

Network 1 Technologies  vs.  Xometry

Network 1 Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Network 1 Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Network 1 reported solid returns over the last few months and may actually be approaching a breakup point.

Xometry

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Xometry are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Xometry is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Network 1 and Xometry

The main advantage of trading using opposite Network 1 and Xometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network 1 position performs unexpectedly, Xometry 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 Xometry will offset losses from the drop in Xometry's long position.

The idea behind Network 1 Technologies and Xometry 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.