Correlation Between Mativ Holdings and Hudson Technologies
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings and Hudson Technologies 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 Hudson Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Hudson Technologies, you can compare the effects of market volatilities on Mativ Holdings and Hudson Technologies 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 Hudson Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Hudson Technologies.
Diversification Opportunities for Mativ Holdings and Hudson Technologies
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mativ and Hudson is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Hudson Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Technologies 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 Hudson Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Technologies has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Hudson Technologies go up and down completely randomly.
Pair Corralation between Mativ Holdings and Hudson Technologies
Given the investment horizon of 90 days Mativ Holdings is expected to generate 1.64 times more return on investment than Hudson Technologies. However, Mativ Holdings is 1.64 times more volatile than Hudson Technologies. It trades about 0.27 of its potential returns per unit of risk. Hudson Technologies is currently generating about 0.11 per unit of risk. If you would invest 636.00 in Mativ Holdings on April 23, 2025 and sell it today you would earn a total of 92.00 from holding Mativ Holdings or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Hudson Technologies
Performance |
| Timeline |
| Mativ Holdings |
| Hudson Technologies |
Mativ Holdings and Hudson Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Hudson Technologies
The main advantage of trading using opposite Mativ Holdings and Hudson Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Hudson Technologies 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 Hudson Technologies will offset losses from the drop in Hudson Technologies' 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 |
| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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