Correlation Between Mativ Holdings and Axalta Coating
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Axalta Coating 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 Axalta Coating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Axalta Coating Systems, you can compare the effects of market volatilities on Mativ Holdings and Axalta Coating 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 Axalta Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Axalta Coating.
Diversification Opportunities for Mativ Holdings and Axalta Coating
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mativ and Axalta is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Axalta Coating Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axalta Coating Systems 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 Axalta Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axalta Coating Systems has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Axalta Coating go up and down completely randomly.
Pair Corralation between Mativ Holdings and Axalta Coating
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Axalta Coating. In addition to that, Mativ Holdings is 2.37 times more volatile than Axalta Coating Systems. It trades about -0.03 of its total potential returns per unit of risk. Axalta Coating Systems is currently generating about 0.04 per unit of volatility. If you would invest 2,927 in Axalta Coating Systems on November 2, 2024 and sell it today you would earn a total of 760.00 from holding Axalta Coating Systems or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Axalta Coating Systems
Performance |
| Timeline |
| Mativ Holdings |
| Axalta Coating Systems |
Mativ Holdings and Axalta Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Axalta Coating
The main advantage of trading using opposite Mativ Holdings and Axalta Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Axalta Coating 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 Axalta Coating will offset losses from the drop in Axalta Coating's 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 |
| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |