Correlation Between DANIMER SCIENTIFIC and Materialise

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

By analyzing existing cross correlation between DANIMER SCIENTIFIC and Materialise NV, you can compare the effects of market volatilities on DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of DANIMER SCIENTIFIC and Materialise.

Diversification Opportunities for DANIMER SCIENTIFIC and Materialise

-0.93

Correlation Coefficient

DANIMER SCIENTIFIC  Materialise

Pay attention - limited upside

The 3 months correlation between DANIMER and Materialise is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding DANIMER SCIENTIFIC and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC i.e., DANIMER SCIENTIFIC and Materialise go up and down completely randomly.

Pair Corralation between DANIMER SCIENTIFIC and Materialise

If you would invest  850.00  in DANIMER SCIENTIFIC on October 15, 2024 and sell it today you would earn a total of  0.00  from holding DANIMER SCIENTIFIC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	93.75%
Values	Daily Returns

DANIMER SCIENTIFIC  vs.  Materialise NV

DANIMER SCIENTIFIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DANIMER SCIENTIFIC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Materialise NV

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Materialise NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Materialise unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DANIMER SCIENTIFIC and Materialise

The main advantage of trading using opposite DANIMER SCIENTIFIC and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DANIMER SCIENTIFIC 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.

The idea behind DANIMER SCIENTIFIC and Materialise NV 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.