Correlation Between Mativ Holdings and Logan Ridge
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Logan Ridge 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 Logan Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Logan Ridge Finance, you can compare the effects of market volatilities on Mativ Holdings and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Logan Ridge.
Diversification Opportunities for Mativ Holdings and Logan Ridge
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Logan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Logan Ridge go up and down completely randomly.
Pair Corralation between Mativ Holdings and Logan Ridge
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Logan Ridge. In addition to that, Mativ Holdings is 3.21 times more volatile than Logan Ridge Finance. It trades about -0.03 of its total potential returns per unit of risk. Logan Ridge Finance is currently generating about 0.1 per unit of volatility. If you would invest 2,133 in Logan Ridge Finance on September 3, 2024 and sell it today you would earn a total of 467.00 from holding Logan Ridge Finance or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Logan Ridge Finance
Performance |
| Timeline |
| Mativ Holdings |
| Logan Ridge Finance |
Mativ Holdings and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Logan Ridge
The main advantage of trading using opposite Mativ Holdings and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge'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 |
| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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