Correlation Between Mativ Holdings and Sezzle Common
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Sezzle Common 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 Sezzle Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Sezzle Common Stock, you can compare the effects of market volatilities on Mativ Holdings and Sezzle Common 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 Sezzle Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Sezzle Common.
Diversification Opportunities for Mativ Holdings and Sezzle Common
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Sezzle is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Sezzle Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sezzle Common Stock 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 Sezzle Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sezzle Common Stock has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Sezzle Common go up and down completely randomly.
Pair Corralation between Mativ Holdings and Sezzle Common
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Sezzle Common. But the stock apears to be less risky and, when comparing its historical volatility, Mativ Holdings is 3.07 times less risky than Sezzle Common. The stock trades about -0.1 of its potential returns per unit of risk. The Sezzle Common Stock is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 22,964 in Sezzle Common Stock on August 31, 2024 and sell it today you would earn a total of 18,531 from holding Sezzle Common Stock or generate 80.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mativ Holdings vs. Sezzle Common Stock
Performance |
| Timeline |
| Mativ Holdings |
| Sezzle Common Stock |
Mativ Holdings and Sezzle Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Sezzle Common
The main advantage of trading using opposite Mativ Holdings and Sezzle Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Sezzle Common 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 Sezzle Common will offset losses from the drop in Sezzle Common'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 |
| Sezzle Common vs. Biglari Holdings | Sezzle Common vs. Summa Silver Corp | Sezzle Common vs. Park Hotels Resorts | Sezzle Common vs. Summit Materials |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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