Correlation Between Materialise and Apple
Can any of the company-specific risk be diversified away by investing in both Materialise and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Apple Inc, you can compare the effects of market volatilities on Materialise and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Apple.
Diversification Opportunities for Materialise and Apple
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Materialise and Apple is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Materialise i.e., Materialise and Apple go up and down completely randomly.
Pair Corralation between Materialise and Apple
Assuming the 90 days trading horizon Materialise NV is expected to generate 2.92 times more return on investment than Apple. However, Materialise is 2.92 times more volatile than Apple Inc. It trades about 0.19 of its potential returns per unit of risk. Apple Inc is currently generating about 0.09 per unit of risk. If you would invest 590.00 in Materialise NV on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Materialise NV or generate 16.95% 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. Apple Inc
Performance |
| Timeline |
| Materialise NV |
| Apple Inc |
Materialise and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Apple
The main advantage of trading using opposite Materialise and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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