Correlation Between Materialise and TIMES CHINA
Can any of the company-specific risk be diversified away by investing in both Materialise and TIMES CHINA 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 TIMES CHINA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and TIMES CHINA HLDGS, you can compare the effects of market volatilities on Materialise and TIMES CHINA 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 TIMES CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and TIMES CHINA.
Diversification Opportunities for Materialise and TIMES CHINA
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Materialise and TIMES is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and TIMES CHINA HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIMES CHINA HLDGS 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 TIMES CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIMES CHINA HLDGS has no effect on the direction of Materialise i.e., Materialise and TIMES CHINA go up and down completely randomly.
Pair Corralation between Materialise and TIMES CHINA
Assuming the 90 days trading horizon Materialise NV is expected to generate 0.67 times more return on investment than TIMES CHINA. However, Materialise NV is 1.49 times less risky than TIMES CHINA. It trades about 0.19 of its potential returns per unit of risk. TIMES CHINA HLDGS is currently generating about -0.07 per unit of risk. If you would invest 650.00 in Materialise NV on September 13, 2024 and sell it today you would earn a total of 110.00 from holding Materialise NV or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. TIMES CHINA HLDGS
Performance |
| Timeline |
| Materialise NV |
| TIMES CHINA HLDGS |
Materialise and TIMES CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and TIMES CHINA
The main advantage of trading using opposite Materialise and TIMES CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, TIMES CHINA 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 TIMES CHINA will offset losses from the drop in TIMES CHINA's long position.| Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc | Materialise vs. Apple Inc |
| TIMES CHINA vs. Hollywood Bowl Group | TIMES CHINA vs. ZINC MEDIA GR | TIMES CHINA vs. Universal Entertainment | TIMES CHINA vs. DISTRICT METALS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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