Correlation Between Matson Money and Tributary Small/mid

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

By analyzing existing cross correlation between Matson Money Equity and Tributary Smallmid Cap, you can compare the effects of market volatilities on Matson Money and Tributary Small/mid 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 Tributary Small/mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Tributary Small/mid.

Diversification Opportunities for Matson Money and Tributary Small/mid

0.98

Correlation Coefficient

Matson Money  Tributary Small/mid

Almost no diversification

The 3 months correlation between Matson and Tributary is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity and Tributary Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tributary Smallmid Cap 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 Equity are associated (or correlated) with Tributary Small/mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tributary Smallmid Cap has no effect on the direction of Matson Money i.e., Matson Money and Tributary Small/mid go up and down completely randomly.

Pair Corralation between Matson Money and Tributary Small/mid

Assuming the 90 days horizon Matson Money Equity is expected to generate 0.86 times more return on investment than Tributary Small/mid. However, Matson Money Equity is 1.16 times less risky than Tributary Small/mid. It trades about 0.2 of its potential returns per unit of risk. Tributary Smallmid Cap is currently generating about 0.15 per unit of risk. If you would invest  2,933  in Matson Money Equity on May 1, 2025 and sell it today you would earn a total of  359.00  from holding Matson Money Equity or generate 12.24% return on investment over 90 days.

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

Matson Money Equity  vs.  Tributary Smallmid Cap

Matson Money Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Matson Money Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Matson Money may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Tributary Smallmid Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tributary Smallmid Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Tributary Small/mid may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Matson Money and Tributary Small/mid

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

The idea behind Matson Money Equity and Tributary Smallmid Cap 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.