Correlation Between Materialise and Dno ASA
Can any of the company-specific risk be diversified away by investing in both Materialise and Dno ASA 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 Dno ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Dno ASA, you can compare the effects of market volatilities on Materialise and Dno ASA 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 Dno ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Dno ASA.
Diversification Opportunities for Materialise and Dno ASA
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Materialise and Dno is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Dno ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dno ASA 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 Dno ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dno ASA has no effect on the direction of Materialise i.e., Materialise and Dno ASA go up and down completely randomly.
Pair Corralation between Materialise and Dno ASA
Assuming the 90 days trading horizon Materialise is expected to generate 1.48 times less return on investment than Dno ASA. In addition to that, Materialise is 1.54 times more volatile than Dno ASA. It trades about 0.01 of its total potential returns per unit of risk. Dno ASA is currently generating about 0.02 per unit of volatility. If you would invest 1,187 in Dno ASA on September 12, 2024 and sell it today you would earn a total of 155.00 from holding Dno ASA or generate 13.06% 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. Dno ASA
Performance |
| Timeline |
| Materialise NV |
| Dno ASA |
Materialise and Dno ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Dno ASA
The main advantage of trading using opposite Materialise and Dno ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Dno ASA 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 Dno ASA will offset losses from the drop in Dno ASA's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| Dno ASA vs. Harmony Gold Mining | Dno ASA vs. Materialise NV | Dno ASA vs. Eagle Materials | Dno ASA vs. Plastic Omnium |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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