Correlation Between Materialise and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Materialise and ANTA SPORTS 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 ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Materialise and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and ANTA SPORTS.
Diversification Opportunities for Materialise and ANTA SPORTS
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Materialise and ANTA is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Materialise i.e., Materialise and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Materialise and ANTA SPORTS
Assuming the 90 days trading horizon Materialise is expected to generate 1.2 times less return on investment than ANTA SPORTS. In addition to that, Materialise is 1.05 times more volatile than ANTA SPORTS PRODUCT. It trades about 0.05 of its total potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.06 per unit of volatility. If you would invest 659.00 in ANTA SPORTS PRODUCT on November 5, 2024 and sell it today you would earn a total of 361.00 from holding ANTA SPORTS PRODUCT or generate 54.78% 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. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Materialise NV |
| ANTA SPORTS PRODUCT |
Materialise and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and ANTA SPORTS
The main advantage of trading using opposite Materialise and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Materialise vs. Verizon Communications | Materialise vs. Ribbon Communications | Materialise vs. FIREWEED METALS P | Materialise vs. GREENX METALS LTD |
| ANTA SPORTS vs. KENEDIX OFFICE INV | ANTA SPORTS vs. DFS Furniture PLC | ANTA SPORTS vs. CLEAN ENERGY FUELS | ANTA SPORTS vs. The Home Depot |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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