Correlation Between Mativ Holdings and HNI Corp
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and HNI Corp 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 HNI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and HNI Corp, you can compare the effects of market volatilities on Mativ Holdings and HNI Corp 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 HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and HNI Corp.
Diversification Opportunities for Mativ Holdings and HNI Corp
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mativ and HNI is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp 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 HNI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corp has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and HNI Corp go up and down completely randomly.
Pair Corralation between Mativ Holdings and HNI Corp
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the HNI Corp. In addition to that, Mativ Holdings is 3.0 times more volatile than HNI Corp. It trades about -0.08 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.28 per unit of volatility. If you would invest 5,152 in HNI Corp on August 28, 2024 and sell it today you would earn a total of 597.00 from holding HNI Corp or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. HNI Corp
Performance |
| Timeline |
| Mativ Holdings |
| HNI Corp |
Mativ Holdings and HNI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and HNI Corp
The main advantage of trading using opposite Mativ Holdings and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, HNI Corp 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 HNI Corp will offset losses from the drop in HNI Corp'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 |
| HNI Corp vs. Park Electrochemical | HNI Corp vs. Innovative Solutions and | HNI Corp vs. Curtiss Wright | HNI Corp vs. National Presto Industries |
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 Positions Ratings module to 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.
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