Correlation Between Big Rock and Mattr Corp
Can any of the company-specific risk be diversified away by investing in both Big Rock 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 Big Rock and Mattr Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big Rock Brewery and Mattr Corp, you can compare the effects of market volatilities on Big Rock 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 Big Rock with a short position of Mattr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big Rock and Mattr Corp.
Diversification Opportunities for Big Rock and Mattr Corp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Big and Mattr is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Big Rock Brewery and Mattr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattr Corp and Big Rock 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 Big Rock Brewery 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 Big Rock i.e., Big Rock and Mattr Corp go up and down completely randomly.
Pair Corralation between Big Rock and Mattr Corp
Assuming the 90 days horizon Big Rock Brewery is expected to generate 0.98 times more return on investment than Mattr Corp. However, Big Rock Brewery is 1.02 times less risky than Mattr Corp. It trades about -0.14 of its potential returns per unit of risk. Mattr Corp is currently generating about -0.2 per unit of risk. If you would invest 108.00 in Big Rock Brewery on August 31, 2025 and sell it today you would lose (28.00) from holding Big Rock Brewery or give up 25.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Big Rock Brewery vs. Mattr Corp
Performance |
| Timeline |
| Big Rock Brewery |
| Mattr Corp |
Big Rock and Mattr Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Big Rock and Mattr Corp
The main advantage of trading using opposite Big Rock and Mattr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big Rock 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.| Big Rock vs. AKITA Drilling | Big Rock vs. Brookfield Office Properties | Big Rock vs. Dominion Lending Centres | Big Rock vs. Mako Mining Corp |
| Mattr Corp vs. Data Communications Management | Mattr Corp vs. Information Services | Mattr Corp vs. Cogeco Communications | Mattr Corp vs. Broadcom CDR |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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