Correlation Between Materialise and Antero Resources
Can any of the company-specific risk be diversified away by investing in both Materialise and Antero Resources 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 Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Antero Resources Corp, you can compare the effects of market volatilities on Materialise and Antero Resources 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 Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Antero Resources.
Diversification Opportunities for Materialise and Antero Resources
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Materialise and Antero is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Antero Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources 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 Antero Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Resources Corp has no effect on the direction of Materialise i.e., Materialise and Antero Resources go up and down completely randomly.
Pair Corralation between Materialise and Antero Resources
Assuming the 90 days trading horizon Materialise is expected to generate 1.37 times less return on investment than Antero Resources. In addition to that, Materialise is 1.01 times more volatile than Antero Resources Corp. It trades about 0.2 of its total potential returns per unit of risk. Antero Resources Corp is currently generating about 0.28 per unit of volatility. If you would invest 2,415 in Antero Resources Corp on August 30, 2024 and sell it today you would earn a total of 638.00 from holding Antero Resources Corp or generate 26.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. Antero Resources Corp
Performance |
| Timeline |
| Materialise NV |
| Antero Resources Corp |
Materialise and Antero Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Antero Resources
The main advantage of trading using opposite Materialise and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Antero Resources 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 Antero Resources will offset losses from the drop in Antero Resources' long position.| Materialise vs. Elmos Semiconductor SE | Materialise vs. Lendlease Group | Materialise vs. Magnachip Semiconductor | Materialise vs. Air Lease |
| Antero Resources vs. BJs Restaurants | Antero Resources vs. Federal Agricultural Mortgage | Antero Resources vs. Hanison Construction Holdings | Antero Resources vs. Dairy Farm International |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |