Correlation Between Mativ Holdings and Distoken Acquisition

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

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

Diversification Opportunities for Mativ Holdings and Distoken Acquisition

0.68

Correlation Coefficient

Mativ Holdings  Distoken Acquisition

Poor diversification

The 3 months correlation between Mativ and Distoken is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition 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 Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Distoken Acquisition go up and down completely randomly.

Pair Corralation between Mativ Holdings and Distoken Acquisition

Given the investment horizon of 90 days Mativ Holdings is expected to generate 1.46 times less return on investment than Distoken Acquisition. But when comparing it to its historical volatility, Mativ Holdings is 1.97 times less risky than Distoken Acquisition. It trades about 0.18 of its potential returns per unit of risk. Distoken Acquisition is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Distoken Acquisition on May 16, 2025 and sell it today you would earn a total of  4.00  from holding Distoken Acquisition or generate 16.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	26.23%
Values	Daily Returns

Mativ Holdings  vs.  Distoken Acquisition

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.

Distoken Acquisition

Risk-Adjusted Performance

Fair

Over the last 90 days Distoken Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively unfluctuating basic indicators, Distoken Acquisition reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mativ Holdings and Distoken Acquisition

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

The idea behind Mativ Holdings and Distoken Acquisition 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 Commodity Directory module to find actively traded commodities issued by global exchanges.