Correlation Between Mativ Holdings and Fenbo Holdings
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Fenbo 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 Mativ Holdings and Fenbo Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Fenbo Holdings Limited, you can compare the effects of market volatilities on Mativ Holdings and Fenbo 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 Mativ Holdings with a short position of Fenbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Fenbo Holdings.
Diversification Opportunities for Mativ Holdings and Fenbo Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mativ and Fenbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Fenbo Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fenbo Holdings 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 Fenbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fenbo Holdings has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Fenbo Holdings go up and down completely randomly.
Pair Corralation between Mativ Holdings and Fenbo Holdings
Given the investment horizon of 90 days Mativ Holdings is expected to generate 0.6 times more return on investment than Fenbo Holdings. However, Mativ Holdings is 1.66 times less risky than Fenbo Holdings. It trades about -0.08 of its potential returns per unit of risk. Fenbo Holdings Limited is currently generating about -0.18 per unit of risk. If you would invest 1,610 in Mativ Holdings on August 28, 2024 and sell it today you would lose (208.00) from holding Mativ Holdings or give up 12.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Fenbo Holdings Limited
Performance |
| Timeline |
| Mativ Holdings |
| Fenbo Holdings |
Mativ Holdings and Fenbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Fenbo Holdings
The main advantage of trading using opposite Mativ Holdings and Fenbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Fenbo 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 Fenbo Holdings will offset losses from the drop in Fenbo Holdings' 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 |
| Fenbo Holdings vs. Amer Sports, | Fenbo Holdings vs. Brunswick | Fenbo Holdings vs. Ralph Lauren Corp | Fenbo Holdings vs. Under Armour C |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |