Correlation Between Toast and Xometry

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

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

Diversification Opportunities for Toast and Xometry

-0.79

Correlation Coefficient

Toast  Xometry

Pay attention - limited upside

The 3 months correlation between Toast and Xometry is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Toast Inc and Xometry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xometry and Toast 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 Toast Inc 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 Toast i.e., Toast and Xometry go up and down completely randomly.

Pair Corralation between Toast and Xometry

Given the investment horizon of 90 days Toast Inc is expected to under-perform the Xometry. But the stock apears to be less risky and, when comparing its historical volatility, Toast Inc is 2.76 times less risky than Xometry. The stock trades about -0.16 of its potential returns per unit of risk. The Xometry is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,284  in Xometry on July 28, 2025 and sell it today you would earn a total of  1,693  from holding Xometry or generate 51.55% return on investment over 90 days.

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

Toast Inc  vs.  Xometry

Toast Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Toast Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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 unsteady basic indicators, Xometry reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Toast and Xometry

The main advantage of trading using opposite Toast and Xometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Toast 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 Toast Inc 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.