Earnings season can be a minefield for investors who own volatile stocks. Certain stocks regularly trade up or down 10–20 percent in a day when reporting earnings or other major news.
3D printing stock 3D Systems Corporation DDD 3.99%, for example, opened Wednesday’s trading session up more than 15 percent following a big earnings beat. Wednesday’s move follows post-earnings moves of -6.4 percent, +25.1 percent, +10.0 percent and +16.2 percent in the past four quarters.
3D printer stocks can be so volatile that they often trade up or down off of each other’s news. Stratasys, Ltd. SSYS 3.72%, for example, is up 5.3 percent on Wednesday, even though it doesn’t report earnings until Thursday.
For 3D printer investors hoping to avoid the huge one-day swings associated with earnings season, Benzinga took a look at exactly how high the correlation is among 3D printer stocks 3D Systems, Stratasys, ExOne Co XONE 2.73%, Voxeljet AG (ADR) VJET 1.97% and Materialise NV (ADR) MTLS 0.43%.
Here’s a look at Portfolio Visualizer daily return correlation matrix.
It’s not surprising that all the major 3D printer stocks are positively correlated with each other, but some of the correlations are higher than others.
As Wednesday’s trading action suggests, the highest correlation among the group is…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
