Correlation Between Materialise and ZhongAn Online
Can any of the company-specific risk be diversified away by investing in both Materialise and ZhongAn Online 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 Materialise and ZhongAn Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and ZhongAn Online P, you can compare the effects of market volatilities on Materialise and ZhongAn Online 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 Materialise with a short position of ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and ZhongAn Online.
Diversification Opportunities for Materialise and ZhongAn Online
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Materialise and ZhongAn is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P and Materialise 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 Materialise NV are associated (or correlated) with ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of Materialise i.e., Materialise and ZhongAn Online go up and down completely randomly.
Pair Corralation between Materialise and ZhongAn Online
Assuming the 90 days trading horizon Materialise is expected to generate 1.11 times less return on investment than ZhongAn Online. In addition to that, Materialise is 1.67 times more volatile than ZhongAn Online P. It trades about 0.11 of its total potential returns per unit of risk. ZhongAn Online P is currently generating about 0.2 per unit of volatility. If you would invest 134.00 in ZhongAn Online P on November 5, 2024 and sell it today you would earn a total of 11.00 from holding ZhongAn Online P or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. ZhongAn Online P
Performance |
| Timeline |
| Materialise NV |
| ZhongAn Online P |
Materialise and ZhongAn Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and ZhongAn Online
The main advantage of trading using opposite Materialise and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.| Materialise vs. MARKET VECTR RETAIL | Materialise vs. Nomad Foods | Materialise vs. National Retail Properties | Materialise vs. SIDETRADE EO 1 |
| ZhongAn Online vs. PPHE HOTEL GROUP | ZhongAn Online vs. EPSILON HEALTHCARE LTD | ZhongAn Online vs. Acadia Healthcare | ZhongAn Online vs. Brockhaus Capital Management |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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