Correlation Between Materialise and Logista
Can any of the company-specific risk be diversified away by investing in both Materialise and Logista 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 Logista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Logista, you can compare the effects of market volatilities on Materialise and Logista 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 Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Logista.
Diversification Opportunities for Materialise and Logista
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Materialise and Logista is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista 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 Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of Materialise i.e., Materialise and Logista go up and down completely randomly.
Pair Corralation between Materialise and Logista
Assuming the 90 days trading horizon Materialise is expected to generate 5.68 times less return on investment than Logista. In addition to that, Materialise is 3.01 times more volatile than Logista. It trades about 0.0 of its total potential returns per unit of risk. Logista is currently generating about 0.08 per unit of volatility. If you would invest 2,082 in Logista on September 3, 2024 and sell it today you would earn a total of 918.00 from holding Logista or generate 44.09% 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. Logista
Performance |
| Timeline |
| Materialise NV |
| Logista |
Materialise and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Logista
The main advantage of trading using opposite Materialise and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Logista 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 Logista will offset losses from the drop in Logista's long position.| Materialise vs. Ming Le Sports | Materialise vs. Insurance Australia Group | Materialise vs. Direct Line Insurance | Materialise vs. Perseus Mining Limited |
| Logista vs. Gol Intelligent Airlines | Logista vs. BII Railway Transportation | Logista vs. Aegean Airlines SA | Logista vs. COPLAND ROAD CAPITAL |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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