Correlation Between Mativ Holdings and PACIFIC
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By analyzing existing cross correlation between Mativ Holdings and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Mativ Holdings and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and PACIFIC.
Diversification Opportunities for Mativ Holdings and PACIFIC
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mativ and PACIFIC is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and PACIFIC go up and down completely randomly.
Pair Corralation between Mativ Holdings and PACIFIC
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the PACIFIC. In addition to that, Mativ Holdings is 4.64 times more volatile than PACIFIC GAS ELECTRIC. It trades about -0.09 of its total potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.08 per unit of volatility. If you would invest 8,685 in PACIFIC GAS ELECTRIC on September 4, 2024 and sell it today you would lose (175.00) from holding PACIFIC GAS ELECTRIC or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mativ Holdings vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Mativ Holdings |
| PACIFIC GAS ELECTRIC |
Mativ Holdings and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and PACIFIC
The main advantage of trading using opposite Mativ Holdings and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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