Correlation Between Materialise and STANLEY ELECTRIC
Can any of the company-specific risk be diversified away by investing in both Materialise and STANLEY ELECTRIC 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 STANLEY ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and STANLEY ELECTRIC CO, you can compare the effects of market volatilities on Materialise and STANLEY ELECTRIC 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 STANLEY ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and STANLEY ELECTRIC.
Diversification Opportunities for Materialise and STANLEY ELECTRIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Materialise and STANLEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and STANLEY ELECTRIC CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLEY ELECTRIC 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 STANLEY ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLEY ELECTRIC has no effect on the direction of Materialise i.e., Materialise and STANLEY ELECTRIC go up and down completely randomly.
Pair Corralation between Materialise and STANLEY ELECTRIC
If you would invest 802.00 in Materialise NV on September 14, 2024 and sell it today you would lose (2.00) from holding Materialise NV or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Materialise NV vs. STANLEY ELECTRIC CO
Performance |
| Timeline |
| Materialise NV |
| STANLEY ELECTRIC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Materialise and STANLEY ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and STANLEY ELECTRIC
The main advantage of trading using opposite Materialise and STANLEY ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, STANLEY ELECTRIC 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 STANLEY ELECTRIC will offset losses from the drop in STANLEY ELECTRIC's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| STANLEY ELECTRIC vs. Auto Trader Group | STANLEY ELECTRIC vs. Highlight Communications AG | STANLEY ELECTRIC vs. Computershare Limited | STANLEY ELECTRIC vs. Entravision Communications |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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