Correlation Between Materialise and METAIR INVTS
Can any of the company-specific risk be diversified away by investing in both Materialise and METAIR INVTS 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 METAIR INVTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and METAIR INVTS LTD, you can compare the effects of market volatilities on Materialise and METAIR INVTS 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 METAIR INVTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and METAIR INVTS.
Diversification Opportunities for Materialise and METAIR INVTS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Materialise and METAIR is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and METAIR INVTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METAIR INVTS LTD 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 METAIR INVTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METAIR INVTS LTD has no effect on the direction of Materialise i.e., Materialise and METAIR INVTS go up and down completely randomly.
Pair Corralation between Materialise and METAIR INVTS
Assuming the 90 days trading horizon Materialise NV is expected to generate 0.85 times more return on investment than METAIR INVTS. However, Materialise NV is 1.17 times less risky than METAIR INVTS. It trades about 0.08 of its potential returns per unit of risk. METAIR INVTS LTD is currently generating about -0.09 per unit of risk. If you would invest 685.00 in Materialise NV on October 30, 2024 and sell it today you would earn a total of 70.00 from holding Materialise NV or generate 10.22% 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. METAIR INVTS LTD
Performance |
| Timeline |
| Materialise NV |
| METAIR INVTS LTD |
Materialise and METAIR INVTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and METAIR INVTS
The main advantage of trading using opposite Materialise and METAIR INVTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, METAIR INVTS 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 METAIR INVTS will offset losses from the drop in METAIR INVTS's long position.| Materialise vs. Corporate Travel Management | Materialise vs. Fukuyama Transporting Co | Materialise vs. Yuexiu Transport Infrastructure | Materialise vs. Platinum Investment Management |
| METAIR INVTS vs. Dno ASA | METAIR INVTS vs. DENSO P ADR | METAIR INVTS vs. Aptiv PLC | METAIR INVTS vs. Bridgestone |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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