Correlation Between T Rowe and Matrix Advisors

Can any of the company-specific risk be diversified away by investing in both T Rowe and Matrix Advisors 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 T Rowe and Matrix Advisors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between T Rowe Price and Matrix Advisors Dividend, you can compare the effects of market volatilities on T Rowe and Matrix Advisors 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 T Rowe with a short position of Matrix Advisors. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rowe and Matrix Advisors.

Diversification Opportunities for T Rowe and Matrix Advisors

0.57

Correlation Coefficient

T Rowe  Matrix Advisors

Very weak diversification

The 3 months correlation between TCELX and Matrix is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding T Rowe Price and Matrix Advisors Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix Advisors Dividend and T Rowe 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 T Rowe Price are associated (or correlated) with Matrix Advisors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix Advisors Dividend has no effect on the direction of T Rowe i.e., T Rowe and Matrix Advisors go up and down completely randomly.

Pair Corralation between T Rowe and Matrix Advisors

Assuming the 90 days horizon T Rowe Price is expected to generate 1.84 times more return on investment than Matrix Advisors. However, T Rowe is 1.84 times more volatile than Matrix Advisors Dividend. It trades about 0.08 of its potential returns per unit of risk. Matrix Advisors Dividend is currently generating about 0.12 per unit of risk. If you would invest  1,388  in T Rowe Price on August 11, 2025 and sell it today you would earn a total of  30.00  from holding T Rowe Price or generate 2.16% return on investment over 90 days.

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

T Rowe Price  vs.  Matrix Advisors Dividend

T Rowe Price

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, T Rowe may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Matrix Advisors Dividend

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix Advisors Dividend are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Matrix Advisors is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with T Rowe and Matrix Advisors

The main advantage of trading using opposite T Rowe and Matrix Advisors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rowe position performs unexpectedly, Matrix Advisors 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 Matrix Advisors will offset losses from the drop in Matrix Advisors' long position.

The idea behind T Rowe Price and Matrix Advisors Dividend 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.