Correlation Between Mativ Holdings and SFCCN

Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and SFCCN 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 SFCCN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mativ Holdings and SFCCN 53 13 MAY 28, you can compare the effects of market volatilities on Mativ Holdings and SFCCN 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 SFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and SFCCN.

Diversification Opportunities for Mativ Holdings and SFCCN

-0.84

Correlation Coefficient

Mativ Holdings  SFCCN

Pay attention - limited upside

The 3 months correlation between Mativ and SFCCN is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and SFCCN 53 13 MAY 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFCCN 53 13 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 SFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFCCN 53 13 has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and SFCCN go up and down completely randomly.

Pair Corralation between Mativ Holdings and SFCCN

Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the SFCCN. In addition to that, Mativ Holdings is 9.1 times more volatile than SFCCN 53 13 MAY 28. It trades about -0.17 of its total potential returns per unit of risk. SFCCN 53 13 MAY 28 is currently generating about -0.01 per unit of volatility. If you would invest  9,890  in SFCCN 53 13 MAY 28 on September 16, 2024 and sell it today you would lose (13.00) from holding SFCCN 53 13 MAY 28 or give up 0.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	35.38%
Values	Daily Returns

Mativ Holdings  vs.  SFCCN 53 13 MAY 28

Mativ Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mativ Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

SFCCN 53 13

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SFCCN 53 13 MAY 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SFCCN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mativ Holdings and SFCCN

The main advantage of trading using opposite Mativ Holdings and SFCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, SFCCN 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 SFCCN will offset losses from the drop in SFCCN's long position.

The idea behind Mativ Holdings and SFCCN 53 13 MAY 28 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.