Correlation Between Materialise and DAX Index
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By analyzing existing cross correlation between Materialise NV and DAX Index, you can compare the effects of market volatilities on Materialise and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and DAX Index.
Diversification Opportunities for Materialise and DAX Index
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Materialise and DAX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Materialise i.e., Materialise and DAX Index go up and down completely randomly.
Pair Corralation between Materialise and DAX Index
Assuming the 90 days trading horizon Materialise NV is expected to generate 7.28 times more return on investment than DAX Index. However, Materialise is 7.28 times more volatile than DAX Index. It trades about 0.17 of its potential returns per unit of risk. DAX Index is currently generating about 0.48 per unit of risk. If you would invest 650.00 in Materialise NV on September 16, 2024 and sell it today you would earn a total of 95.00 from holding Materialise NV or generate 14.62% 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. DAX Index
Performance |
| Timeline |
Materialise and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Materialise NV
Pair trading matchups for Materialise
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Materialise and DAX Index
The main advantage of trading using opposite Materialise and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Materialise vs. Cal Maine Foods | Materialise vs. Insurance Australia Group | Materialise vs. REVO INSURANCE SPA | Materialise vs. Safety Insurance Group |
| DAX Index vs. PLAYTIKA HOLDING DL 01 | DAX Index vs. Eagle Materials | DAX Index vs. Materialise NV | DAX Index vs. JD SPORTS FASH |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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