Correlation Between Mayfair Gold and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and Mativ Holdings 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 Mayfair Gold and Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and Mativ Holdings, you can compare the effects of market volatilities on Mayfair Gold and Mativ Holdings 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 Mayfair Gold with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Mativ Holdings.
Diversification Opportunities for Mayfair Gold and Mativ Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mayfair and Mativ is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and Mayfair Gold 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 Mayfair Gold Corp are associated (or correlated) with Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and Mativ Holdings go up and down completely randomly.
Pair Corralation between Mayfair Gold and Mativ Holdings
Assuming the 90 days horizon Mayfair Gold Corp is expected to generate 0.68 times more return on investment than Mativ Holdings. However, Mayfair Gold Corp is 1.46 times less risky than Mativ Holdings. It trades about -0.01 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.03 per unit of risk. If you would invest 147.00 in Mayfair Gold Corp on September 1, 2024 and sell it today you would lose (11.00) from holding Mayfair Gold Corp or give up 7.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. Mativ Holdings
Performance |
| Timeline |
| Mayfair Gold Corp |
| Mativ Holdings |
Mayfair Gold and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and Mativ Holdings
The main advantage of trading using opposite Mayfair Gold and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |