Correlation Between Founder Group and Matrix Service

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

By analyzing existing cross correlation between Founder Group Limited and Matrix Service Co, you can compare the effects of market volatilities on Founder Group and Matrix Service 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 Founder Group with a short position of Matrix Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Founder Group and Matrix Service.

Diversification Opportunities for Founder Group and Matrix Service

-0.68

Correlation Coefficient

Founder Group  Matrix Service

Excellent diversification

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

Pair Corralation between Founder Group and Matrix Service

Considering the 90-day investment horizon Founder Group Limited is expected to under-perform the Matrix Service. In addition to that, Founder Group is 1.99 times more volatile than Matrix Service Co. It trades about -0.09 of its total potential returns per unit of risk. Matrix Service Co is currently generating about 0.14 per unit of volatility. If you would invest  1,190  in Matrix Service Co on April 25, 2025 and sell it today you would earn a total of  279.00  from holding Matrix Service Co or generate 23.45% return on investment over 90 days.

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

Founder Group Limited  vs.  Matrix Service Co

Founder Group Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Founder Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Matrix Service

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix Service Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Matrix Service showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Founder Group and Matrix Service

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

The idea behind Founder Group Limited and Matrix Service Co 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.