Correlation Between Advanced Proteome and Mativ Holdings

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

By analyzing existing cross correlation between Advanced Proteome Therapeutics and Mativ Holdings, you can compare the effects of market volatilities on Advanced Proteome 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 Advanced Proteome with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Proteome and Mativ Holdings.

Diversification Opportunities for Advanced Proteome and Mativ Holdings

0.0

Correlation Coefficient

Advanced Proteome  Mativ Holdings

Pay attention - limited upside

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

Pair Corralation between Advanced Proteome and Mativ Holdings

If you would invest  515.00  in Mativ Holdings on May 5, 2025 and sell it today you would earn a total of  111.00  from holding Mativ Holdings or generate 21.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	15.87%
Values	Daily Returns

Advanced Proteome Therapeutics  vs.  Mativ Holdings

Advanced Proteome

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advanced Proteome Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advanced Proteome is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mativ Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mativ Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Mativ Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Proteome and Mativ Holdings

The main advantage of trading using opposite Advanced Proteome and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Proteome 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 Advanced Proteome Therapeutics 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.