Correlation Between Materialise and Siemens Global

Can any of the company-specific risk be diversified away by investing in both Materialise and Siemens Global 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 Siemens Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Materialise NV and Siemens Global Growth, you can compare the effects of market volatilities on Materialise and Siemens Global 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 Siemens Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Materialise and Siemens Global.

Diversification Opportunities for Materialise and Siemens Global

0.0

Correlation Coefficient

Materialise  Siemens Global

Pay attention - limited upside

The 3 months correlation between Materialise and Siemens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Materialise NV and Siemens Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Global Growth 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 Siemens Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Global Growth has no effect on the direction of Materialise i.e., Materialise and Siemens Global go up and down completely randomly.

Pair Corralation between Materialise and Siemens Global

If you would invest (100.00) in Siemens Global Growth on December 24, 2024 and sell it today you would earn a total of  100.00  from holding Siemens Global Growth or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Materialise NV  vs.  Siemens Global Growth

Materialise NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Materialise NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Siemens Global Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siemens Global Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Siemens Global is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Materialise and Siemens Global

The main advantage of trading using opposite Materialise and Siemens Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Materialise position performs unexpectedly, Siemens Global 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 Siemens Global will offset losses from the drop in Siemens Global's long position.

The idea behind Materialise NV and Siemens Global Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.