Correlation Between Endava and Materialise
Can any of the company-specific risk be diversified away by investing in both Endava 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 Endava and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endava and Materialise NV, you can compare the effects of market volatilities on Endava 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 Endava with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endava and Materialise.
Diversification Opportunities for Endava and Materialise
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Endava and Materialise is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Endava and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and Endava 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 Endava 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 Endava i.e., Endava and Materialise go up and down completely randomly.
Pair Corralation between Endava and Materialise
Given the investment horizon of 90 days Endava is expected to under-perform the Materialise. In addition to that, Endava is 1.65 times more volatile than Materialise NV. It trades about -0.19 of its total potential returns per unit of risk. Materialise NV is currently generating about 0.1 per unit of volatility. If you would invest 493.00 in Materialise NV on September 3, 2025 and sell it today you would earn a total of 96.00 from holding Materialise NV or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endava vs. Materialise NV
Performance |
| Timeline |
| Endava |
| Materialise NV |
Endava and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endava and Materialise
The main advantage of trading using opposite Endava and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endava 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.| Endava vs. Yooma Wellness | Endava vs. Abingdon Health Plc | Endava vs. Viemed Healthcare | Endava vs. Vice Health and |
| Materialise vs. JD Sports Fashion | Materialise vs. Gaztransport Technigaz SA | Materialise vs. Jones Soda Co | Materialise vs. Logansport Financial Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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