Correlation Between Mativ Holdings and Core Molding
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Core Molding 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 Core Molding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Core Molding Technologies, you can compare the effects of market volatilities on Mativ Holdings and Core Molding 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 Core Molding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Core Molding.
Diversification Opportunities for Mativ Holdings and Core Molding
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mativ and Core is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Core Molding Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Molding Technologies 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 Core Molding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Molding Technologies has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Core Molding go up and down completely randomly.
Pair Corralation between Mativ Holdings and Core Molding
Given the investment horizon of 90 days Mativ Holdings is expected to generate 1.26 times more return on investment than Core Molding. However, Mativ Holdings is 1.26 times more volatile than Core Molding Technologies. It trades about 0.0 of its potential returns per unit of risk. Core Molding Technologies is currently generating about 0.0 per unit of risk. If you would invest 1,668 in Mativ Holdings on August 31, 2024 and sell it today you would lose (353.00) from holding Mativ Holdings or give up 21.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Core Molding Technologies
Performance |
| Timeline |
| Mativ Holdings |
| Core Molding Technologies |
Mativ Holdings and Core Molding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Core Molding
The main advantage of trading using opposite Mativ Holdings and Core Molding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Core Molding 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 Core Molding will offset losses from the drop in Core Molding'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 |
| Core Molding vs. Innospec | Core Molding vs. H B Fuller | Core Molding vs. Quaker Chemical | Core Molding vs. Minerals Technologies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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