Correlation Between Materialise and International Game
Can any of the company-specific risk be diversified away by investing in both Materialise and International Game 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 International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Materialise NV and International Game Technology, you can compare the effects of market volatilities on Materialise and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and International Game.
Diversification Opportunities for Materialise and International Game
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Materialise and International is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Materialise i.e., Materialise and International Game go up and down completely randomly.
Pair Corralation between Materialise and International Game
Assuming the 90 days trading horizon Materialise NV is expected to generate 2.01 times more return on investment than International Game. However, Materialise is 2.01 times more volatile than International Game Technology. It trades about 0.19 of its potential returns per unit of risk. International Game Technology is currently generating about -0.1 per unit of risk. If you would invest 540.00 in Materialise NV on October 31, 2024 and sell it today you would earn a total of 265.00 from holding Materialise NV or generate 49.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Materialise NV vs. International Game Technology
Performance |
Timeline |
Materialise NV |
International Game |
Materialise and International Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Materialise and International Game
The main advantage of trading using opposite Materialise and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.Materialise vs. United Airlines Holdings | ||
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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