Correlation Between ICL Israel and Mativ Holdings

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

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

Diversification Opportunities for ICL Israel and Mativ Holdings

-0.42

Correlation Coefficient

ICL Israel  Mativ Holdings

Very good diversification

The 3 months correlation between ICL and Mativ is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and ICL Israel 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 ICL Israel Chemicals 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 ICL Israel i.e., ICL Israel and Mativ Holdings go up and down completely randomly.

Pair Corralation between ICL Israel and Mativ Holdings

Considering the 90-day investment horizon ICL Israel Chemicals is expected to under-perform the Mativ Holdings. But the stock apears to be less risky and, when comparing its historical volatility, ICL Israel Chemicals is 2.8 times less risky than Mativ Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Mativ Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  719.00  in Mativ Holdings on July 18, 2025 and sell it today you would earn a total of  360.00  from holding Mativ Holdings or generate 50.07% return on investment over 90 days.

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

ICL Israel Chemicals  vs.  Mativ Holdings

ICL Israel Chemicals

Risk-Adjusted Performance

Weakest

Over the last 90 days ICL Israel Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, ICL Israel is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional 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 10 (%) 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 ICL Israel and Mativ Holdings

The main advantage of trading using opposite ICL Israel and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel 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 ICL Israel Chemicals 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.