Correlation Between Materialise and Takkt AG
Can any of the company-specific risk be diversified away by investing in both Materialise and Takkt AG 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 Takkt AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Takkt AG, you can compare the effects of market volatilities on Materialise and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Takkt AG.
Diversification Opportunities for Materialise and Takkt AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Materialise and Takkt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of Materialise i.e., Materialise and Takkt AG go up and down completely randomly.
Pair Corralation between Materialise and Takkt AG
Assuming the 90 days trading horizon Materialise NV is expected to under-perform the Takkt AG. In addition to that, Materialise is 8.46 times more volatile than Takkt AG. It trades about -0.2 of its total potential returns per unit of risk. Takkt AG is currently generating about 0.11 per unit of volatility. If you would invest 789.00 in Takkt AG on November 29, 2024 and sell it today you would earn a total of 19.00 from holding Takkt AG or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Materialise NV vs. Takkt AG
Performance |
| Timeline |
| Materialise NV |
| Takkt AG |
Materialise and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Takkt AG
The main advantage of trading using opposite Materialise and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| Materialise vs. Fair Value Reit | Materialise vs. COMPUTER MODELLING | Materialise vs. SOGECLAIR SA INH | Materialise vs. UNITED INTERNET N |
| Takkt AG vs. Columbia Sportswear | Takkt AG vs. CODERE ONLINE LUX | Takkt AG vs. GungHo Online Entertainment | Takkt AG vs. GUILD ESPORTS 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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