Correlation Between Compania Cervecerias and Mativ Holdings

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

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

Diversification Opportunities for Compania Cervecerias and Mativ Holdings

-0.87

Correlation Coefficient

Compania Cervecerias  Mativ Holdings

Pay attention - limited upside

The 3 months correlation between Compania and Mativ is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and Compania Cervecerias 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 Compania Cervecerias Unidas 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 Compania Cervecerias i.e., Compania Cervecerias and Mativ Holdings go up and down completely randomly.

Pair Corralation between Compania Cervecerias and Mativ Holdings

Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to under-perform the Mativ Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Compania Cervecerias Unidas is 2.43 times less risky than Mativ Holdings. The stock trades about -0.29 of its potential returns per unit of risk. The Mativ Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  502.00  in Mativ Holdings on May 1, 2025 and sell it today you would earn a total of  226.00  from holding Mativ Holdings or generate 45.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Compania Cervecerias Unidas  vs.  Mativ Holdings

Compania Cervecerias

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compania Cervecerias Unidas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Mativ Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mativ Holdings are ranked lower than 14 (%) 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 Compania Cervecerias and Mativ Holdings

The main advantage of trading using opposite Compania Cervecerias and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias 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 Compania Cervecerias Unidas 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.