Correlation Between Mativ Holdings and AMAZON
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By analyzing existing cross correlation between Mativ Holdings and AMAZON INC 315, you can compare the effects of market volatilities on Mativ Holdings and AMAZON 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 AMAZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and AMAZON.
Diversification Opportunities for Mativ Holdings and AMAZON
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mativ and AMAZON is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and AMAZON INC 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZON INC 315 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 AMAZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZON INC 315 has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and AMAZON go up and down completely randomly.
Pair Corralation between Mativ Holdings and AMAZON
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the AMAZON. In addition to that, Mativ Holdings is 5.33 times more volatile than AMAZON INC 315. It trades about -0.1 of its total potential returns per unit of risk. AMAZON INC 315 is currently generating about -0.23 per unit of volatility. If you would invest 9,885 in AMAZON INC 315 on August 31, 2024 and sell it today you would lose (507.00) from holding AMAZON INC 315 or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mativ Holdings vs. AMAZON INC 315
Performance |
| Timeline |
| Mativ Holdings |
| AMAZON INC 315 |
Mativ Holdings and AMAZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and AMAZON
The main advantage of trading using opposite Mativ Holdings and AMAZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, AMAZON 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 AMAZON will offset losses from the drop in AMAZON'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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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