Correlation Between Materialise and AXA SA
Can any of the company-specific risk be diversified away by investing in both Materialise and AXA SA 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 AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and AXA SA, you can compare the effects of market volatilities on Materialise and AXA SA 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 AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and AXA SA.
Diversification Opportunities for Materialise and AXA SA
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Materialise and AXA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA 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 AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of Materialise i.e., Materialise and AXA SA go up and down completely randomly.
Pair Corralation between Materialise and AXA SA
Assuming the 90 days trading horizon Materialise NV is expected to generate 3.32 times more return on investment than AXA SA. However, Materialise is 3.32 times more volatile than AXA SA. It trades about 0.14 of its potential returns per unit of risk. AXA SA is currently generating about 0.26 per unit of risk. If you would invest 695.00 in Materialise NV on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Materialise NV or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. AXA SA
Performance |
| Timeline |
| Materialise NV |
| AXA SA |
Materialise and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and AXA SA
The main advantage of trading using opposite Materialise and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA's long position.| Materialise vs. Xiwang Special Steel | Materialise vs. Olympic Steel | Materialise vs. Zoom Video Communications | Materialise vs. FIH MOBILE |
| AXA SA vs. PENN Entertainment | AXA SA vs. IMPERIAL TOBACCO | AXA SA vs. SQUIRREL MEDIA SA | AXA SA vs. Planet Fitness |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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