Correlation Between Mattr Corp and Source Energy

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

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

Diversification Opportunities for Mattr Corp and Source Energy

0.91

Correlation Coefficient

Mattr Corp  Source Energy

Almost no diversification

The 3 months correlation between Mattr and Source is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mattr Corp and Source Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Source Energy Services 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 Source Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Source Energy Services has no effect on the direction of Mattr Corp i.e., Mattr Corp and Source Energy go up and down completely randomly.

Pair Corralation between Mattr Corp and Source Energy

Assuming the 90 days trading horizon Mattr Corp is expected to generate 0.85 times more return on investment than Source Energy. However, Mattr Corp is 1.18 times less risky than Source Energy. It trades about 0.06 of its potential returns per unit of risk. Source Energy Services is currently generating about 0.04 per unit of risk. If you would invest  1,118  in Mattr Corp on May 13, 2025 and sell it today you would earn a total of  95.00  from holding Mattr Corp or generate 8.5% return on investment over 90 days.

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

Mattr Corp  vs.  Source Energy Services

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 unfluctuating basic indicators, Mattr Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Source Energy Services

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Source Energy Services are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Source Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Mattr Corp and Source Energy

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

The idea behind Mattr Corp and Source Energy Services 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.