Correlation Between ASPEN TECHINC and Materialise
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC 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 ASPEN TECHINC and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and Materialise NV, you can compare the effects of market volatilities on ASPEN TECHINC 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 ASPEN TECHINC with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and Materialise.
Diversification Opportunities for ASPEN TECHINC and Materialise
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASPEN and Materialise is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and ASPEN TECHINC 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 ASPEN TECHINC DL 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 ASPEN TECHINC i.e., ASPEN TECHINC and Materialise go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and Materialise
Assuming the 90 days horizon ASPEN TECHINC is expected to generate 1.61 times less return on investment than Materialise. But when comparing it to its historical volatility, ASPEN TECHINC DL is 3.42 times less risky than Materialise. It trades about 0.28 of its potential returns per unit of risk. Materialise NV is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 755.00 in Materialise NV on November 7, 2024 and sell it today you would earn a total of 65.00 from holding Materialise NV or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. Materialise NV
Performance |
| Timeline |
| ASPEN TECHINC DL |
| Materialise NV |
ASPEN TECHINC and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and Materialise
The main advantage of trading using opposite ASPEN TECHINC and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC 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.| ASPEN TECHINC vs. Salesforce | ASPEN TECHINC vs. SAP SE | ASPEN TECHINC vs. Uber Technologies | ASPEN TECHINC vs. PagerDuty |
| Materialise vs. Yanzhou Coal Mining | Materialise vs. Sunny Optical Technology | Materialise vs. STGEORGE MINING LTD | Materialise vs. MCEWEN MINING INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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