Correlation Between Melexis NV and Ekopak BV
Can any of the company-specific risk be diversified away by investing in both Melexis NV and Ekopak BV 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 Melexis NV and Ekopak BV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melexis NV and Ekopak BV, you can compare the effects of market volatilities on Melexis NV and Ekopak BV 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 Melexis NV with a short position of Ekopak BV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melexis NV and Ekopak BV.
Diversification Opportunities for Melexis NV and Ekopak BV
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Melexis and Ekopak is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Melexis NV and Ekopak BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekopak BV and Melexis NV 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 Melexis NV are associated (or correlated) with Ekopak BV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekopak BV has no effect on the direction of Melexis NV i.e., Melexis NV and Ekopak BV go up and down completely randomly.
Pair Corralation between Melexis NV and Ekopak BV
Assuming the 90 days trading horizon Melexis NV is expected to under-perform the Ekopak BV. In addition to that, Melexis NV is 1.15 times more volatile than Ekopak BV. It trades about -0.04 of its total potential returns per unit of risk. Ekopak BV is currently generating about -0.02 per unit of volatility. If you would invest 1,808 in Ekopak BV on November 9, 2024 and sell it today you would lose (423.00) from holding Ekopak BV or give up 23.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melexis NV vs. Ekopak BV
Performance |
| Timeline |
| Melexis NV |
| Ekopak BV |
Melexis NV and Ekopak BV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melexis NV and Ekopak BV
The main advantage of trading using opposite Melexis NV and Ekopak BV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melexis NV position performs unexpectedly, Ekopak BV 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 Ekopak BV will offset losses from the drop in Ekopak BV's long position.| Melexis NV vs. Ackermans Van Haaren | Melexis NV vs. Sofina Socit Anonyme | Melexis NV vs. ageas SANV | Melexis NV vs. Barco NV |
| Ekopak BV vs. Xior Student Housing | Ekopak BV vs. DIeteren Group SA | Ekopak BV vs. Melexis NV | Ekopak BV vs. DEME Group NV |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |