Correlation Between Inflection Point and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Inflection Point and Mativ Holdings 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 Inflection Point and Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Mativ Holdings, you can compare the effects of market volatilities on Inflection Point and Mativ Holdings 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 Inflection Point with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Mativ Holdings.
Diversification Opportunities for Inflection Point and Mativ Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inflection and Mativ is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and Inflection Point 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 Inflection Point Acquisition are associated (or correlated) with Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Inflection Point i.e., Inflection Point and Mativ Holdings go up and down completely randomly.
Pair Corralation between Inflection Point and Mativ Holdings
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 0.06 times more return on investment than Mativ Holdings. However, Inflection Point Acquisition is 15.6 times less risky than Mativ Holdings. It trades about 0.11 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,055 in Inflection Point Acquisition on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Inflection Point Acquisition or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Mativ Holdings
Performance |
| Timeline |
| Inflection Point Acq |
| Mativ Holdings |
Inflection Point and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Mativ Holdings
The main advantage of trading using opposite Inflection Point and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Inflection Point vs. Arrow Electronics | Inflection Point vs. BioNTech SE | Inflection Point vs. BJs Restaurants | Inflection Point vs. Yum Brands |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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