Correlation Between Mativ Holdings and GLOBAL
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By analyzing existing cross correlation between Mativ Holdings and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Mativ Holdings and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and GLOBAL.
Diversification Opportunities for Mativ Holdings and GLOBAL
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mativ and GLOBAL is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and GLOBAL go up and down completely randomly.
Pair Corralation between Mativ Holdings and GLOBAL
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the GLOBAL. In addition to that, Mativ Holdings is 3.92 times more volatile than GLOBAL PAYMENTS INC. It trades about -0.09 of its total potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.22 per unit of volatility. If you would invest 9,546 in GLOBAL PAYMENTS INC on September 4, 2024 and sell it today you would lose (611.00) from holding GLOBAL PAYMENTS INC or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mativ Holdings vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| Mativ Holdings |
| GLOBAL PAYMENTS INC |
Mativ Holdings and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and GLOBAL
The main advantage of trading using opposite Mativ Holdings and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL'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 |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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