Correlation Between Matson Money and North Capital

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

By analyzing existing cross correlation between Matson Money Fixed and North Capital Funds, you can compare the effects of market volatilities on Matson Money and North Capital 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 Matson Money with a short position of North Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and North Capital.

Diversification Opportunities for Matson Money and North Capital

0.1

Correlation Coefficient

Matson Money  North Capital

Average diversification

The 3 months correlation between Matson and North is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Fixed and North Capital Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Capital Funds and Matson Money 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 Matson Money Fixed are associated (or correlated) with North Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Capital Funds has no effect on the direction of Matson Money i.e., Matson Money and North Capital go up and down completely randomly.

Pair Corralation between Matson Money and North Capital

If you would invest  2,416  in Matson Money Fixed on May 6, 2025 and sell it today you would earn a total of  34.00  from holding Matson Money Fixed or generate 1.41% return on investment over 90 days.

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

Matson Money Fixed  vs.  North Capital Funds

Matson Money Fixed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Matson Money Fixed are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Matson Money is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

North Capital Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days North Capital Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, North Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Matson Money and North Capital

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

The idea behind Matson Money Fixed and North Capital Funds 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..