Correlation Between Mativ Holdings and Weyco
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Weyco 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 Weyco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Weyco Group, you can compare the effects of market volatilities on Mativ Holdings and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Weyco.
Diversification Opportunities for Mativ Holdings and Weyco
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mativ and Weyco is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Weyco go up and down completely randomly.
Pair Corralation between Mativ Holdings and Weyco
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Weyco. In addition to that, Mativ Holdings is 1.16 times more volatile than Weyco Group. It trades about -0.12 of its total potential returns per unit of risk. Weyco Group is currently generating about 0.1 per unit of volatility. If you would invest 3,344 in Weyco Group on August 26, 2024 and sell it today you would earn a total of 301.00 from holding Weyco Group or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Weyco Group
Performance |
| Timeline |
| Mativ Holdings |
| Weyco Group |
Mativ Holdings and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Weyco
The main advantage of trading using opposite Mativ Holdings and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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