Correlation Between Mativ Holdings and Codexis
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Codexis 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 Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Codexis, you can compare the effects of market volatilities on Mativ Holdings and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Codexis.
Diversification Opportunities for Mativ Holdings and Codexis
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Codexis is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Codexis go up and down completely randomly.
Pair Corralation between Mativ Holdings and Codexis
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Codexis. But the stock apears to be less risky and, when comparing its historical volatility, Mativ Holdings is 1.43 times less risky than Codexis. The stock trades about -0.01 of its potential returns per unit of risk. The Codexis is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 561.00 in Codexis on August 31, 2024 and sell it today you would lose (102.00) from holding Codexis or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mativ Holdings vs. Codexis
Performance |
| Timeline |
| Mativ Holdings |
| Codexis |
Mativ Holdings and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Codexis
The main advantage of trading using opposite Mativ Holdings and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' 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 |
| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |