Correlation Between Power Solutions and Xometry

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

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

Diversification Opportunities for Power Solutions and Xometry

-0.03

Correlation Coefficient

Power Solutions  Xometry

Good diversification

The 3 months correlation between Power and Xometry is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Power Solutions International, and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry and Power Solutions 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 Power Solutions International, 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 Power Solutions i.e., Power Solutions and Xometry go up and down completely randomly.

Pair Corralation between Power Solutions and Xometry

Given the investment horizon of 90 days Power Solutions International, is expected to under-perform the Xometry. In addition to that, Power Solutions is 1.16 times more volatile than Xometry. It trades about -0.07 of its total potential returns per unit of risk. Xometry is currently generating about 0.13 per unit of volatility. If you would invest  4,790  in Xometry on August 13, 2025 and sell it today you would earn a total of  1,849  from holding Xometry or generate 38.6% return on investment over 90 days.

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

Power Solutions International,  vs.  Xometry

Power Solutions Inte

Risk-Adjusted Performance

Weakest

Over the last 90 days Power Solutions International, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Xometry

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Xometry are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Xometry reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Power Solutions and Xometry

The main advantage of trading using opposite Power Solutions and Xometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Solutions 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 Power Solutions International, 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.