Correlation Between FEMALE HEALTH and Materialise
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Materialise NV, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Materialise.
Diversification Opportunities for FEMALE HEALTH and Materialise
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FEMALE and Materialise is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Materialise go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Materialise
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 1.34 times less return on investment than Materialise. In addition to that, FEMALE HEALTH is 1.2 times more volatile than Materialise NV. It trades about 0.05 of its total potential returns per unit of risk. Materialise NV is currently generating about 0.07 per unit of volatility. If you would invest 655.00 in Materialise NV on October 11, 2024 and sell it today you would earn a total of 60.00 from holding Materialise NV or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Materialise NV
Performance |
| Timeline |
| FEMALE HEALTH |
| Materialise NV |
FEMALE HEALTH and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Materialise
The main advantage of trading using opposite FEMALE HEALTH and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. PennantPark Investment | FEMALE HEALTH vs. AM EAGLE OUTFITTERS | FEMALE HEALTH vs. Scottish Mortgage Investment | FEMALE HEALTH vs. HK Electric Investments |
| Materialise vs. AOI Electronics Co | Materialise vs. FORWARD AIR P | Materialise vs. WIZZ AIR HLDGUNSPADR4 | Materialise vs. CHINA SOUTHN AIR H |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |