Correlation Between Mativ Holdings and NEXTERA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Mativ Holdings and NEXTERA ENERGY CAPITAL, you can compare the effects of market volatilities on Mativ Holdings and NEXTERA 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 NEXTERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and NEXTERA.
Diversification Opportunities for Mativ Holdings and NEXTERA
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mativ and NEXTERA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and NEXTERA ENERGY CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXTERA ENERGY CAPITAL 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 NEXTERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXTERA ENERGY CAPITAL has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and NEXTERA go up and down completely randomly.
Pair Corralation between Mativ Holdings and NEXTERA
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the NEXTERA. In addition to that, Mativ Holdings is 6.8 times more volatile than NEXTERA ENERGY CAPITAL. It trades about -0.11 of its total potential returns per unit of risk. NEXTERA ENERGY CAPITAL is currently generating about -0.18 per unit of volatility. If you would invest 8,855 in NEXTERA ENERGY CAPITAL on August 31, 2024 and sell it today you would lose (533.00) from holding NEXTERA ENERGY CAPITAL or give up 6.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. NEXTERA ENERGY CAPITAL
Performance |
| Timeline |
| Mativ Holdings |
| NEXTERA ENERGY CAPITAL |
Mativ Holdings and NEXTERA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and NEXTERA
The main advantage of trading using opposite Mativ Holdings and NEXTERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, NEXTERA 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 NEXTERA will offset losses from the drop in NEXTERA'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 |
| NEXTERA vs. enVVeno Medical Corp | NEXTERA vs. Bassett Furniture Industries | NEXTERA vs. Mid Atlantic Home Health | NEXTERA vs. Smith Douglas Homes |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |