Correlation Between Materialise and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Materialise and Apollo Investment 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 Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Apollo Investment Corp, you can compare the effects of market volatilities on Materialise and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Apollo Investment.
Diversification Opportunities for Materialise and Apollo Investment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Materialise and Apollo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Materialise i.e., Materialise and Apollo Investment go up and down completely randomly.
Pair Corralation between Materialise and Apollo Investment
Assuming the 90 days trading horizon Materialise NV is expected to generate 4.74 times more return on investment than Apollo Investment. However, Materialise is 4.74 times more volatile than Apollo Investment Corp. It trades about 0.19 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.2 per unit of risk. If you would invest 650.00 in Materialise NV on September 13, 2024 and sell it today you would earn a total of 110.00 from holding Materialise NV or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. Apollo Investment Corp
Performance |
| Timeline |
| Materialise NV |
| Apollo Investment Corp |
Materialise and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Apollo Investment
The main advantage of trading using opposite Materialise and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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