Correlation Between Mativ Holdings and Saia
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Saia 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 Saia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Saia Inc, you can compare the effects of market volatilities on Mativ Holdings and Saia 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 Saia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Saia.
Diversification Opportunities for Mativ Holdings and Saia
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Saia is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Saia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saia Inc 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 Saia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saia Inc has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Saia go up and down completely randomly.
Pair Corralation between Mativ Holdings and Saia
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Saia. In addition to that, Mativ Holdings is 1.25 times more volatile than Saia Inc. It trades about -0.03 of its total potential returns per unit of risk. Saia Inc is currently generating about 0.09 per unit of volatility. If you would invest 39,326 in Saia Inc on September 3, 2024 and sell it today you would earn a total of 17,582 from holding Saia Inc or generate 44.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Saia Inc
Performance |
| Timeline |
| Mativ Holdings |
| Saia Inc |
Mativ Holdings and Saia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Saia
The main advantage of trading using opposite Mativ Holdings and Saia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Saia 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 Saia will offset losses from the drop in Saia'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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