Correlation Between Mativ Holdings and Hurco Companies
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Hurco Companies 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 Hurco Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Hurco Companies, you can compare the effects of market volatilities on Mativ Holdings and Hurco Companies 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 Hurco Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Hurco Companies.
Diversification Opportunities for Mativ Holdings and Hurco Companies
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mativ and Hurco is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Hurco Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurco Companies 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 Hurco Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurco Companies has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Hurco Companies go up and down completely randomly.
Pair Corralation between Mativ Holdings and Hurco Companies
Given the investment horizon of 90 days Mativ Holdings is expected to generate 1.26 times more return on investment than Hurco Companies. However, Mativ Holdings is 1.26 times more volatile than Hurco Companies. It trades about -0.23 of its potential returns per unit of risk. Hurco Companies is currently generating about -0.37 per unit of risk. If you would invest 1,309 in Mativ Holdings on September 23, 2024 and sell it today you would lose (163.00) from holding Mativ Holdings or give up 12.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mativ Holdings vs. Hurco Companies
Performance |
Timeline |
Mativ Holdings |
Hurco Companies |
Mativ Holdings and Hurco Companies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mativ Holdings and Hurco Companies
The main advantage of trading using opposite Mativ Holdings and Hurco Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Hurco Companies 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 Hurco Companies will offset losses from the drop in Hurco Companies' 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 |
Hurco Companies vs. Graco Inc | Hurco Companies vs. Ametek Inc | Hurco Companies vs. IDEX Corporation | Hurco Companies vs. ITT Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |