Correlation Between Canadian General and Mattr Corp

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

By analyzing existing cross correlation between Canadian General Investments and Mattr Corp, you can compare the effects of market volatilities on Canadian General and Mattr Corp 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 Canadian General with a short position of Mattr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian General and Mattr Corp.

Diversification Opportunities for Canadian General and Mattr Corp

0.82

Correlation Coefficient

Canadian General  Mattr Corp

Very poor diversification

The 3 months correlation between Canadian and Mattr is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Canadian General Investments and Mattr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattr Corp and Canadian General 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 Canadian General Investments are associated (or correlated) with Mattr Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattr Corp has no effect on the direction of Canadian General i.e., Canadian General and Mattr Corp go up and down completely randomly.

Pair Corralation between Canadian General and Mattr Corp

Assuming the 90 days trading horizon Canadian General is expected to generate 1.08 times less return on investment than Mattr Corp. But when comparing it to its historical volatility, Canadian General Investments is 2.79 times less risky than Mattr Corp. It trades about 0.2 of its potential returns per unit of risk. Mattr Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,095  in Mattr Corp on May 12, 2025 and sell it today you would earn a total of  118.00  from holding Mattr Corp or generate 10.78% return on investment over 90 days.

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

Canadian General Investments  vs.  Mattr Corp

Canadian General Inv

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Canadian General Investments are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Canadian General may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Mattr Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mattr Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Mattr Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Canadian General and Mattr Corp

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

The idea behind Canadian General Investments and Mattr Corp 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.