Correlation Between ZhongAn Online and Mativ Holdings

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Can any of the company-specific risk be diversified away by investing in both ZhongAn Online 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 ZhongAn Online and Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and Mativ Holdings, you can compare the effects of market volatilities on ZhongAn Online 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 ZhongAn Online with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Mativ Holdings.

Diversification Opportunities for ZhongAn Online and Mativ Holdings

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ZhongAn and Mativ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and ZhongAn Online 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 ZhongAn Online P 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 ZhongAn Online i.e., ZhongAn Online and Mativ Holdings go up and down completely randomly.

Pair Corralation between ZhongAn Online and Mativ Holdings

If you would invest  1,235  in Mativ Holdings on September 2, 2025 and sell it today you would lose (5.00) from holding Mativ Holdings or give up 0.4% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ZhongAn Online P  vs.  Mativ Holdings

 Performance 
       Timeline  
ZhongAn Online P 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ZhongAn Online P has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, ZhongAn Online is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Mativ Holdings 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mativ Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Mativ Holdings is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ZhongAn Online and Mativ Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ZhongAn Online and Mativ Holdings

The main advantage of trading using opposite ZhongAn Online and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online 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 ZhongAn Online P 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.
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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 Stocks Directory module to find actively traded stocks across global markets.

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