Correlation Between High Arctic and Mattr Corp

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

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

Diversification Opportunities for High Arctic and Mattr Corp

0.76

Correlation Coefficient

High Arctic  Mattr Corp

Poor diversification

The 3 months correlation between High and Mattr is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding High Arctic Energy and Mattr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattr Corp and High Arctic 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 High Arctic Energy 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 High Arctic i.e., High Arctic and Mattr Corp go up and down completely randomly.

Pair Corralation between High Arctic and Mattr Corp

Assuming the 90 days trading horizon High Arctic is expected to generate 5.3 times less return on investment than Mattr Corp. In addition to that, High Arctic is 1.05 times more volatile than Mattr Corp. It trades about 0.01 of its total potential returns per unit of risk. Mattr Corp is currently generating about 0.08 per unit of volatility. If you would invest  1,095  in Mattr Corp on May 10, 2025 and sell it today you would earn a total of  114.00  from holding Mattr Corp or generate 10.41% return on investment over 90 days.

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

High Arctic Energy  vs.  Mattr Corp

High Arctic Energy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in High Arctic Energy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, High Arctic is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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 High Arctic and Mattr Corp

The main advantage of trading using opposite High Arctic and Mattr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Arctic 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 High Arctic Energy 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.