Correlation Between Materialise and ALLIANZ SE
Can any of the company-specific risk be diversified away by investing in both Materialise and ALLIANZ SE 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 ALLIANZ SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and ALLIANZ SE UNSPADR, you can compare the effects of market volatilities on Materialise and ALLIANZ SE 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 ALLIANZ SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and ALLIANZ SE.
Diversification Opportunities for Materialise and ALLIANZ SE
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Materialise and ALLIANZ is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and ALLIANZ SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLIANZ SE UNSPADR 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 ALLIANZ SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLIANZ SE UNSPADR has no effect on the direction of Materialise i.e., Materialise and ALLIANZ SE go up and down completely randomly.
Pair Corralation between Materialise and ALLIANZ SE
Assuming the 90 days trading horizon Materialise NV is expected to generate 2.53 times more return on investment than ALLIANZ SE. However, Materialise is 2.53 times more volatile than ALLIANZ SE UNSPADR. It trades about 0.18 of its potential returns per unit of risk. ALLIANZ SE UNSPADR is currently generating about 0.15 per unit of risk. If you would invest 655.00 in Materialise NV on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Materialise NV or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Materialise NV vs. ALLIANZ SE UNSPADR
Performance |
| Timeline |
| Materialise NV |
| ALLIANZ SE UNSPADR |
Materialise and ALLIANZ SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and ALLIANZ SE
The main advantage of trading using opposite Materialise and ALLIANZ SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, ALLIANZ SE 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 ALLIANZ SE will offset losses from the drop in ALLIANZ SE's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| ALLIANZ SE vs. Superior Plus Corp | ALLIANZ SE vs. SIVERS SEMICONDUCTORS AB | ALLIANZ SE vs. CHINA HUARONG ENERHD 50 | ALLIANZ SE 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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