Correlation Between Safestore Holdings and Materialise
Can any of the company-specific risk be diversified away by investing in both Safestore Holdings 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 Safestore Holdings and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safestore Holdings plc and Materialise NV, you can compare the effects of market volatilities on Safestore Holdings 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 Safestore Holdings with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safestore Holdings and Materialise.
Diversification Opportunities for Safestore Holdings and Materialise
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safestore and Materialise is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Safestore Holdings plc and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and Safestore Holdings 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 Safestore Holdings plc 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 Safestore Holdings i.e., Safestore Holdings and Materialise go up and down completely randomly.
Pair Corralation between Safestore Holdings and Materialise
Assuming the 90 days horizon Safestore Holdings plc is expected to under-perform the Materialise. But the stock apears to be less risky and, when comparing its historical volatility, Safestore Holdings plc is 1.53 times less risky than Materialise. The stock trades about -0.03 of its potential returns per unit of risk. The Materialise NV is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 960.00 in Materialise NV on October 31, 2024 and sell it today you would lose (155.00) from holding Materialise NV or give up 16.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Safestore Holdings plc vs. Materialise NV
Performance |
| Timeline |
| Safestore Holdings plc |
| Materialise NV |
Safestore Holdings and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safestore Holdings and Materialise
The main advantage of trading using opposite Safestore Holdings and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safestore Holdings 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.| Safestore Holdings vs. PLANT VEDA FOODS | Safestore Holdings vs. TYSON FOODS A | Safestore Holdings vs. RETAIL FOOD GROUP | Safestore Holdings vs. Retail Estates NV |
| Materialise vs. United Airlines Holdings | Materialise vs. Solstad Offshore ASA | Materialise vs. Granite Construction | Materialise vs. Eidesvik Offshore ASA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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