Correlation Between Mativ Holdings and KCAP Financial
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and KCAP Financial 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 KCAP Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and KCAP Financial SR, you can compare the effects of market volatilities on Mativ Holdings and KCAP Financial 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 KCAP Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and KCAP Financial.
Diversification Opportunities for Mativ Holdings and KCAP Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and KCAP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and KCAP Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCAP Financial SR 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 KCAP Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCAP Financial SR has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and KCAP Financial go up and down completely randomly.
Pair Corralation between Mativ Holdings and KCAP Financial
If you would invest 1,399 in Mativ Holdings on September 14, 2024 and sell it today you would lose (211.50) from holding Mativ Holdings or give up 15.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mativ Holdings vs. KCAP Financial SR
Performance |
| Timeline |
| Mativ Holdings |
| KCAP Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mativ Holdings and KCAP Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and KCAP Financial
The main advantage of trading using opposite Mativ Holdings and KCAP Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, KCAP Financial 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 KCAP Financial will offset losses from the drop in KCAP Financial'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 |
| KCAP Financial vs. Flexible Solutions International | KCAP Financial vs. Tyson Foods | KCAP Financial vs. Mativ Holdings | KCAP Financial vs. Hf Foods Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |