Correlation Between Mattr Corp and InPlay Oil

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

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

Diversification Opportunities for Mattr Corp and InPlay Oil

-0.73

Correlation Coefficient

Mattr Corp  InPlay Oil

Pay attention - limited upside

The 3 months correlation between Mattr and InPlay is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mattr Corp and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp and Mattr Corp 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 Mattr Corp are associated (or correlated) with InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of Mattr Corp i.e., Mattr Corp and InPlay Oil go up and down completely randomly.

Pair Corralation between Mattr Corp and InPlay Oil

Assuming the 90 days trading horizon Mattr Corp is expected to under-perform the InPlay Oil. In addition to that, Mattr Corp is 1.37 times more volatile than InPlay Oil Corp. It trades about -0.06 of its total potential returns per unit of risk. InPlay Oil Corp is currently generating about 0.31 per unit of volatility. If you would invest  894.00  in InPlay Oil Corp on July 6, 2025 and sell it today you would earn a total of  396.00  from holding InPlay Oil Corp or generate 44.3% return on investment over 90 days.

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

Mattr Corp  vs.  InPlay Oil Corp

Mattr Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Mattr Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

InPlay Oil Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in InPlay Oil Corp are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, InPlay Oil displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mattr Corp and InPlay Oil

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

The idea behind Mattr Corp and InPlay Oil 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.