Correlation Between Materialise and Heineken Holding
Can any of the company-specific risk be diversified away by investing in both Materialise and Heineken Holding 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 Heineken Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and Heineken Holding NV, you can compare the effects of market volatilities on Materialise and Heineken Holding 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 Heineken Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Heineken Holding.
Diversification Opportunities for Materialise and Heineken Holding
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Materialise and Heineken is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Heineken Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken Holding 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 Heineken Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken Holding has no effect on the direction of Materialise i.e., Materialise and Heineken Holding go up and down completely randomly.
Pair Corralation between Materialise and Heineken Holding
Given the investment horizon of 90 days Materialise NV is expected to generate 1.38 times more return on investment than Heineken Holding. However, Materialise is 1.38 times more volatile than Heineken Holding NV. It trades about -0.01 of its potential returns per unit of risk. Heineken Holding NV is currently generating about -0.02 per unit of risk. If you would invest 1,054 in Materialise NV on October 22, 2024 and sell it today you would lose (294.00) from holding Materialise NV or give up 27.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 85.69% |
| Values | Daily Returns |
Materialise NV vs. Heineken Holding NV
Performance |
| Timeline |
| Materialise NV |
| Heineken Holding |
Materialise and Heineken Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Materialise and Heineken Holding
The main advantage of trading using opposite Materialise and Heineken Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Heineken Holding 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 Heineken Holding will offset losses from the drop in Heineken Holding's long position.| Materialise vs. CoreCard Corp | Materialise vs. ADEIA P | Materialise vs. CS Disco LLC | Materialise vs. Meridianlink |
| Heineken Holding vs. Heineken NV | Heineken Holding vs. Anheuser Busch InBev SANV | Heineken Holding vs. Tsingtao Brewery Co | Heineken Holding vs. Carlsberg AS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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