Correlation Between Materialise and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Materialise and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Materialise and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Materialise and COLUMBIA SPORTSWEAR
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Materialise and COLUMBIA is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA SPORTSWEAR has no effect on the direction of Materialise i.e., Materialise and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Materialise and COLUMBIA SPORTSWEAR
Assuming the 90 days trading horizon Materialise NV is expected to generate 1.91 times more return on investment than COLUMBIA SPORTSWEAR. However, Materialise is 1.91 times more volatile than COLUMBIA SPORTSWEAR. It trades about 0.24 of its potential returns per unit of risk. COLUMBIA SPORTSWEAR is currently generating about 0.39 per unit of risk. If you would invest 565.00 in Materialise NV on August 31, 2024 and sell it today you would earn a total of 120.00 from holding Materialise NV or generate 21.24% 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. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Materialise NV |
| COLUMBIA SPORTSWEAR |
Materialise and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Materialise and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR will offset losses from the drop in COLUMBIA SPORTSWEAR's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| COLUMBIA SPORTSWEAR vs. SIVERS SEMICONDUCTORS AB | COLUMBIA SPORTSWEAR vs. Darden Restaurants | COLUMBIA SPORTSWEAR vs. Reliance Steel Aluminum | COLUMBIA SPORTSWEAR vs. Q2M Managementberatung AG |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |