Correlation Between Materialise and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Materialise and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Samsung Electronics Co, you can compare the effects of market volatilities on Materialise and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Samsung Electronics.
Diversification Opportunities for Materialise and Samsung Electronics
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Materialise and Samsung is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Materialise i.e., Materialise and Samsung Electronics go up and down completely randomly.
Pair Corralation between Materialise and Samsung Electronics
Assuming the 90 days trading horizon Materialise NV is expected to generate 1.71 times more return on investment than Samsung Electronics. However, Materialise is 1.71 times more volatile than Samsung Electronics Co. It trades about 0.01 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 812.00 in Materialise NV on September 23, 2024 and sell it today you would lose (87.00) from holding Materialise NV or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. Samsung Electronics Co
Performance |
| Timeline |
| Materialise NV |
| Samsung Electronics |
Materialise and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Samsung Electronics
The main advantage of trading using opposite Materialise and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Materialise vs. NEWELL RUBBERMAID | Materialise vs. National Beverage Corp | Materialise vs. VULCAN MATERIALS | Materialise vs. Thai Beverage Public |
| Samsung Electronics vs. Materialise NV | Samsung Electronics vs. EAGLE MATERIALS | Samsung Electronics vs. Jupiter Fund Management | Samsung Electronics 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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