Correlation Between Mativ Holdings and Slate Office

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

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

Diversification Opportunities for Mativ Holdings and Slate Office

0.38

Correlation Coefficient

Mativ Holdings  Slate Office

Weak diversification

The 3 months correlation between Mativ and Slate is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and Slate Office REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slate Office REIT 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 Slate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slate Office REIT has no effect on the direction of Mativ Holdings i.e., Mativ Holdings and Slate Office go up and down completely randomly.

Pair Corralation between Mativ Holdings and Slate Office

Given the investment horizon of 90 days Mativ Holdings is expected to generate 12.51 times more return on investment than Slate Office. However, Mativ Holdings is 12.51 times more volatile than Slate Office REIT. It trades about 0.1 of its potential returns per unit of risk. Slate Office REIT is currently generating about 0.13 per unit of risk. If you would invest  741.00  in Mativ Holdings on July 13, 2025 and sell it today you would earn a total of  231.00  from holding Mativ Holdings or generate 31.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Mativ Holdings  vs.  Slate Office REIT

Mativ Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mativ Holdings are ranked lower than 7 (%) 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.

Slate Office REIT

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Slate Office REIT are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Slate Office is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mativ Holdings and Slate Office

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

The idea behind Mativ Holdings and Slate Office REIT 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.