Correlation Between VULCAN and Mativ Holdings
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By analyzing existing cross correlation between VULCAN MATLS 47 and Mativ Holdings, you can compare the effects of market volatilities on VULCAN 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 VULCAN with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of VULCAN and Mativ Holdings.
Diversification Opportunities for VULCAN and Mativ Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VULCAN and Mativ is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding VULCAN MATLS 47 and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and VULCAN 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 VULCAN MATLS 47 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 VULCAN i.e., VULCAN and Mativ Holdings go up and down completely randomly.
Pair Corralation between VULCAN and Mativ Holdings
Assuming the 90 days trading horizon VULCAN MATLS 47 is expected to generate 0.22 times more return on investment than Mativ Holdings. However, VULCAN MATLS 47 is 4.45 times less risky than Mativ Holdings. It trades about 0.0 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.11 per unit of risk. If you would invest 8,836 in VULCAN MATLS 47 on August 28, 2024 and sell it today you would lose (6.00) from holding VULCAN MATLS 47 or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.82% |
| Values | Daily Returns |
VULCAN MATLS 47 vs. Mativ Holdings
Performance |
| Timeline |
| VULCAN MATLS 47 |
| Mativ Holdings |
VULCAN and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VULCAN and Mativ Holdings
The main advantage of trading using opposite VULCAN and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VULCAN 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.The idea behind VULCAN MATLS 47 and Mativ Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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