Correlation Between Mativ Holdings and Perimeter Solutions
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Perimeter Solutions 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 Perimeter Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Perimeter Solutions SA, you can compare the effects of market volatilities on Mativ Holdings and Perimeter Solutions 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 Perimeter Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Perimeter Solutions.
Diversification Opportunities for Mativ Holdings and Perimeter Solutions
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mativ and Perimeter is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Perimeter Solutions SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perimeter Solutions 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 Perimeter Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perimeter Solutions has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Perimeter Solutions go up and down completely randomly.
Pair Corralation between Mativ Holdings and Perimeter Solutions
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Perimeter Solutions. In addition to that, Mativ Holdings is 1.26 times more volatile than Perimeter Solutions SA. It trades about 0.0 of its total potential returns per unit of risk. Perimeter Solutions SA is currently generating about 0.04 per unit of volatility. If you would invest 878.00 in Perimeter Solutions SA on September 2, 2024 and sell it today you would earn a total of 402.00 from holding Perimeter Solutions SA or generate 45.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Perimeter Solutions SA
Performance |
| Timeline |
| Mativ Holdings |
| Perimeter Solutions |
Mativ Holdings and Perimeter Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Perimeter Solutions
The main advantage of trading using opposite Mativ Holdings and Perimeter Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Perimeter Solutions 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 Perimeter Solutions will offset losses from the drop in Perimeter Solutions' 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 |
| Perimeter Solutions vs. Kronos Worldwide | Perimeter Solutions vs. Sensient Technologies | Perimeter Solutions vs. Element Solutions | Perimeter Solutions vs. Trinseo SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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