Correlation Between Mativ Holdings and Chimera Investment

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

By analyzing existing cross correlation between Mativ Holdings and Chimera Investment, you can compare the effects of market volatilities on Mativ Holdings and Chimera Investment 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 Chimera Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Chimera Investment.

Diversification Opportunities for Mativ Holdings and Chimera Investment

-0.31

Correlation Coefficient

Mativ Holdings  Chimera Investment

Very good diversification

The 3 months correlation between Mativ and Chimera is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Chimera Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimera Investment 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 Chimera Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimera Investment has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Chimera Investment go up and down completely randomly.

Pair Corralation between Mativ Holdings and Chimera Investment

Given the investment horizon of 90 days Mativ Holdings is expected to generate 19.15 times more return on investment than Chimera Investment. However, Mativ Holdings is 19.15 times more volatile than Chimera Investment. It trades about 0.12 of its potential returns per unit of risk. Chimera Investment is currently generating about -0.01 per unit of risk. If you would invest  756.00  in Mativ Holdings on July 10, 2025 and sell it today you would earn a total of  312.00  from holding Mativ Holdings or generate 41.27% return on investment over 90 days.

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

Mativ Holdings  vs.  Chimera Investment

Mativ Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mativ Holdings are ranked lower than 9 (%) 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.

Chimera Investment

Risk-Adjusted Performance

Weakest

Over the last 90 days Chimera Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Chimera Investment is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mativ Holdings and Chimera Investment

The main advantage of trading using opposite Mativ Holdings and Chimera Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings position performs unexpectedly, Chimera Investment 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 Chimera Investment will offset losses from the drop in Chimera Investment's long position.

The idea behind Mativ Holdings and Chimera Investment 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.