Correlation Between Materialise and Brockhaus Capital
Can any of the company-specific risk be diversified away by investing in both Materialise and Brockhaus Capital 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 Brockhaus Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Brockhaus Capital Management, you can compare the effects of market volatilities on Materialise and Brockhaus Capital 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 Brockhaus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Brockhaus Capital.
Diversification Opportunities for Materialise and Brockhaus Capital
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Materialise and Brockhaus is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Brockhaus Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brockhaus Capital 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 Brockhaus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brockhaus Capital has no effect on the direction of Materialise i.e., Materialise and Brockhaus Capital go up and down completely randomly.
Pair Corralation between Materialise and Brockhaus Capital
Assuming the 90 days trading horizon Materialise NV is expected to generate 1.93 times more return on investment than Brockhaus Capital. However, Materialise is 1.93 times more volatile than Brockhaus Capital Management. It trades about 0.19 of its potential returns per unit of risk. Brockhaus Capital Management is currently generating about -0.09 per unit of risk. If you would invest 650.00 in Materialise NV on September 13, 2024 and sell it today you would earn a total of 110.00 from holding Materialise NV or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. Brockhaus Capital Management
Performance |
| Timeline |
| Materialise NV |
| Brockhaus Capital |
Materialise and Brockhaus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Brockhaus Capital
The main advantage of trading using opposite Materialise and Brockhaus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Brockhaus Capital 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 Brockhaus Capital will offset losses from the drop in Brockhaus Capital's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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