Correlation Between Mativ Holdings and J Long

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

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

Diversification Opportunities for Mativ Holdings and J Long

-0.4

Correlation Coefficient

Mativ Holdings  J Long

Very good diversification

The 3 months correlation between Mativ and J Long is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and J Long Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Long Group 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 J Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Long Group has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and J Long go up and down completely randomly.

Pair Corralation between Mativ Holdings and J Long

Given the investment horizon of 90 days Mativ Holdings is expected to generate 1.77 times more return on investment than J Long. However, Mativ Holdings is 1.77 times more volatile than J Long Group Limited. It trades about 0.14 of its potential returns per unit of risk. J Long Group Limited is currently generating about 0.04 per unit of risk. If you would invest  752.00  in Mativ Holdings on July 3, 2025 and sell it today you would earn a total of  360.50  from holding Mativ Holdings or generate 47.94% return on investment over 90 days.

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

Mativ Holdings  vs.  J Long Group Limited

Mativ Holdings

Risk-Adjusted Performance

Fair

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.

J Long Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in J Long Group Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating essential indicators, J Long may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Mativ Holdings and J Long

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

The idea behind Mativ Holdings and J Long Group Limited 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.