Correlation Between Materialise and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Materialise and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Materialise and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and PLAYTIKA HOLDING.
Diversification Opportunities for Materialise and PLAYTIKA HOLDING
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Materialise and PLAYTIKA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of Materialise i.e., Materialise and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Materialise and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Materialise NV is expected to generate 2.03 times more return on investment than PLAYTIKA HOLDING. However, Materialise is 2.03 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.22 of its potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.15 per unit of risk. If you would invest 685.00 in Materialise NV on November 3, 2024 and sell it today you would earn a total of 120.00 from holding Materialise NV or generate 17.52% 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. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Materialise NV |
| PLAYTIKA HOLDING |
Materialise and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and PLAYTIKA HOLDING
The main advantage of trading using opposite Materialise and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| Materialise vs. SIVERS SEMICONDUCTORS AB | Materialise vs. NorAm Drilling AS | Materialise vs. Volkswagen AG | Materialise vs. Darden Restaurants |
| PLAYTIKA HOLDING vs. CARSALESCOM | PLAYTIKA HOLDING vs. National Retail Properties | PLAYTIKA HOLDING vs. Tradeweb Markets | PLAYTIKA HOLDING vs. MARKET VECTR RETAIL |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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