Correlation Between Eternal Hospitality and Materialise
Can any of the company-specific risk be diversified away by investing in both Eternal Hospitality 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 Eternal Hospitality and Materialise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eternal Hospitality Group and Materialise NV, you can compare the effects of market volatilities on Eternal Hospitality 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 Eternal Hospitality with a short position of Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eternal Hospitality and Materialise.
Diversification Opportunities for Eternal Hospitality and Materialise
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eternal and Materialise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eternal Hospitality Group and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and Eternal Hospitality 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 Eternal Hospitality Group 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 Eternal Hospitality i.e., Eternal Hospitality and Materialise go up and down completely randomly.
Pair Corralation between Eternal Hospitality and Materialise
If you would invest 495.00 in Materialise NV on September 2, 2025 and sell it today you would earn a total of 94.00 from holding Materialise NV or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eternal Hospitality Group vs. Materialise NV
Performance |
| Timeline |
| Eternal Hospitality |
| Materialise NV |
Eternal Hospitality and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eternal Hospitality and Materialise
The main advantage of trading using opposite Eternal Hospitality and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eternal Hospitality 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.| Eternal Hospitality vs. Zurich Insurance Group | Eternal Hospitality vs. Lattice Semiconductor | Eternal Hospitality vs. Elmos Semiconductor SE | Eternal Hospitality vs. Country Wide Insurance |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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