Correlation Between Mativ Holdings and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and QBE Insurance 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 QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and QBE Insurance Group, you can compare the effects of market volatilities on Mativ Holdings and QBE Insurance 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 QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and QBE Insurance.
Diversification Opportunities for Mativ Holdings and QBE Insurance
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mativ and QBE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and QBE Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE Insurance Group 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 QBE Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE Insurance Group has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and QBE Insurance go up and down completely randomly.
Pair Corralation between Mativ Holdings and QBE Insurance
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the QBE Insurance. In addition to that, Mativ Holdings is 1.25 times more volatile than QBE Insurance Group. It trades about -0.04 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.09 per unit of volatility. If you would invest 892.00 in QBE Insurance Group on December 1, 2024 and sell it today you would earn a total of 498.00 from holding QBE Insurance Group or generate 55.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 38.87% |
| Values | Daily Returns |
Mativ Holdings vs. QBE Insurance Group
Performance |
| Timeline |
| Mativ Holdings |
| QBE Insurance Group |
Mativ Holdings and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and QBE Insurance
The main advantage of trading using opposite Mativ Holdings and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, QBE Insurance 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 QBE Insurance will offset losses from the drop in QBE Insurance'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 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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