Correlation Between Mativ Holdings and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Apogee Enterprises 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 Mativ Holdings and Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Apogee Enterprises, you can compare the effects of market volatilities on Mativ Holdings and Apogee Enterprises 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 Mativ Holdings with a short position of Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Apogee Enterprises.
Diversification Opportunities for Mativ Holdings and Apogee Enterprises
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Apogee is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises and Mativ Holdings 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 Mativ Holdings are associated (or correlated) with Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Mativ Holdings and Apogee Enterprises
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Apogee Enterprises. In addition to that, Mativ Holdings is 1.48 times more volatile than Apogee Enterprises. It trades about -0.03 of its total potential returns per unit of risk. Apogee Enterprises is currently generating about 0.08 per unit of volatility. If you would invest 6,393 in Apogee Enterprises on September 3, 2024 and sell it today you would earn a total of 2,028 from holding Apogee Enterprises or generate 31.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Apogee Enterprises
Performance |
| Timeline |
| Mativ Holdings |
| Apogee Enterprises |
Mativ Holdings and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Apogee Enterprises
The main advantage of trading using opposite Mativ Holdings and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' long position.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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