Correlation Between Addtech AB and Materialise
Can any of the company-specific risk be diversified away by investing in both Addtech AB and Materialise 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 Addtech AB and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Addtech AB and Materialise NV, you can compare the effects of market volatilities on Addtech AB and Materialise 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 Addtech AB with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and Materialise.
Diversification Opportunities for Addtech AB and Materialise
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Addtech and Materialise is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and Addtech AB 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 Addtech AB are associated (or correlated) with Materialise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materialise NV has no effect on the direction of Addtech AB i.e., Addtech AB and Materialise go up and down completely randomly.
Pair Corralation between Addtech AB and Materialise
Assuming the 90 days trading horizon Addtech AB is expected to generate 0.29 times more return on investment than Materialise. However, Addtech AB is 3.4 times less risky than Materialise. It trades about -0.18 of its potential returns per unit of risk. Materialise NV is currently generating about -0.1 per unit of risk. If you would invest 2,696 in Addtech AB on October 12, 2024 and sell it today you would lose (92.00) from holding Addtech AB or give up 3.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. Materialise NV
Performance |
| Timeline |
| Addtech AB |
| Materialise NV |
Addtech AB and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Addtech AB and Materialise
The main advantage of trading using opposite Addtech AB and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, Materialise 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 Materialise will offset losses from the drop in Materialise's long position.| Addtech AB vs. Siamgas And Petrochemicals | Addtech AB vs. DXC Technology Co | Addtech AB vs. X FAB Silicon Foundries | Addtech AB vs. UPDATE SOFTWARE |
| Materialise vs. Addtech AB | Materialise vs. AAC TECHNOLOGHLDGADR | Materialise vs. Playtech plc | Materialise vs. Amkor Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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