Correlation Between Mativ Holdings and BitFuFu

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

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

Diversification Opportunities for Mativ Holdings and BitFuFu

0.2

Correlation Coefficient

Mativ Holdings  BitFuFu

Modest diversification

The 3 months correlation between Mativ and BitFuFu is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and BitFuFu Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Class A 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 BitFuFu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Class A has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and BitFuFu go up and down completely randomly.

Pair Corralation between Mativ Holdings and BitFuFu

Given the investment horizon of 90 days Mativ Holdings is expected to generate 0.98 times more return on investment than BitFuFu. However, Mativ Holdings is 1.02 times less risky than BitFuFu. It trades about 0.1 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.02 per unit of risk. If you would invest  515.00  in Mativ Holdings on May 4, 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	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mativ Holdings  vs.  BitFuFu Class A

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.

BitFuFu Class A

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BitFuFu is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mativ Holdings and BitFuFu

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

The idea behind Mativ Holdings and BitFuFu Class A 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.