Correlation Between Materialise and DELTA AIR
Can any of the company-specific risk be diversified away by investing in both Materialise and DELTA AIR 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 DELTA AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and DELTA AIR LINES, you can compare the effects of market volatilities on Materialise and DELTA AIR 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 DELTA AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and DELTA AIR.
Diversification Opportunities for Materialise and DELTA AIR
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Materialise and DELTA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and DELTA AIR LINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELTA AIR LINES 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 DELTA AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELTA AIR LINES has no effect on the direction of Materialise i.e., Materialise and DELTA AIR go up and down completely randomly.
Pair Corralation between Materialise and DELTA AIR
Assuming the 90 days trading horizon Materialise NV is expected to under-perform the DELTA AIR. In addition to that, Materialise is 1.34 times more volatile than DELTA AIR LINES. It trades about -0.04 of its total potential returns per unit of risk. DELTA AIR LINES is currently generating about 0.24 per unit of volatility. If you would invest 5,767 in DELTA AIR LINES on October 17, 2024 and sell it today you would earn a total of 634.00 from holding DELTA AIR LINES or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. DELTA AIR LINES
Performance |
| Timeline |
| Materialise NV |
| DELTA AIR LINES |
Materialise and DELTA AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and DELTA AIR
The main advantage of trading using opposite Materialise and DELTA AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, DELTA AIR 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 DELTA AIR will offset losses from the drop in DELTA AIR's long position.| Materialise vs. Summit Hotel Properties | Materialise vs. Teradata Corp | Materialise vs. MICRONIC MYDATA | Materialise vs. DALATA HOTEL |
| DELTA AIR vs. De Grey Mining | DELTA AIR vs. LPKF Laser Electronics | DELTA AIR vs. Arrow Electronics | DELTA AIR vs. Endeavour Mining PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |