Correlation Between Mativ Holdings and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Sweetgreen 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 Sweetgreen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Sweetgreen, you can compare the effects of market volatilities on Mativ Holdings and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Sweetgreen.
Diversification Opportunities for Mativ Holdings and Sweetgreen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mativ and Sweetgreen is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Sweetgreen go up and down completely randomly.
Pair Corralation between Mativ Holdings and Sweetgreen
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Sweetgreen. But the stock apears to be less risky and, when comparing its historical volatility, Mativ Holdings is 1.17 times less risky than Sweetgreen. The stock trades about -0.03 of its potential returns per unit of risk. The Sweetgreen is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,498 in Sweetgreen on September 3, 2024 and sell it today you would earn a total of 600.00 from holding Sweetgreen or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Sweetgreen
Performance |
| Timeline |
| Mativ Holdings |
| Sweetgreen |
Mativ Holdings and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Sweetgreen
The main advantage of trading using opposite Mativ Holdings and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen'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 |
| Sweetgreen vs. Highway Holdings Limited | Sweetgreen vs. QCR Holdings | Sweetgreen vs. Partner Communications | Sweetgreen vs. Acumen Pharmaceuticals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |