Correlation Between Materialise and PT Bank
Can any of the company-specific risk be diversified away by investing in both Materialise and PT Bank 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 PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and PT Bank Maybank, you can compare the effects of market volatilities on Materialise and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and PT Bank.
Diversification Opportunities for Materialise and PT Bank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Materialise and BOZA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and PT Bank Maybank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Maybank 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Maybank has no effect on the direction of Materialise i.e., Materialise and PT Bank go up and down completely randomly.
Pair Corralation between Materialise and PT Bank
Assuming the 90 days trading horizon Materialise NV is expected to generate 0.63 times more return on investment than PT Bank. However, Materialise NV is 1.59 times less risky than PT Bank. It trades about 0.03 of its potential returns per unit of risk. PT Bank Maybank is currently generating about 0.01 per unit of risk. If you would invest 630.00 in Materialise NV on September 12, 2024 and sell it today you would earn a total of 130.00 from holding Materialise NV or generate 20.63% 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. PT Bank Maybank
Performance |
| Timeline |
| Materialise NV |
| PT Bank Maybank |
Materialise and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and PT Bank
The main advantage of trading using opposite Materialise and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| PT Bank vs. China Merchants Bank | PT Bank vs. HDFC Bank Limited | PT Bank vs. ICICI Bank Limited | PT Bank vs. PT Bank Central |
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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