Correlation Between GATX and Matthews International
Can any of the company-specific risk be diversified away by investing in both GATX and Matthews International 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 GATX and Matthews International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GATX Corporation and Matthews International, you can compare the effects of market volatilities on GATX and Matthews International 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 GATX with a short position of Matthews International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GATX and Matthews International.
Diversification Opportunities for GATX and Matthews International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GATX and Matthews is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GATX Corp. and Matthews International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews International and GATX 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 GATX Corporation are associated (or correlated) with Matthews International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews International has no effect on the direction of GATX i.e., GATX and Matthews International go up and down completely randomly.
Pair Corralation between GATX and Matthews International
Given the investment horizon of 90 days GATX is expected to generate 1.3 times less return on investment than Matthews International. But when comparing it to its historical volatility, GATX Corporation is 1.63 times less risky than Matthews International. It trades about 0.13 of its potential returns per unit of risk. Matthews International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,151 in Matthews International on May 26, 2025 and sell it today you would earn a total of 345.00 from holding Matthews International or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GATX Corp. vs. Matthews International
Performance |
| Timeline |
| GATX |
| Matthews International |
GATX and Matthews International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GATX and Matthews International
The main advantage of trading using opposite GATX and Matthews International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GATX position performs unexpectedly, Matthews International 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 Matthews International will offset losses from the drop in Matthews International's long position.| GATX vs. McGrath RentCorp | GATX vs. Custom Truck One | GATX vs. Herc Holdings | GATX vs. Alta Equipment Group |
| Matthews International vs. Brookfield Business Partners | Matthews International vs. Compass Diversified Holdings | Matthews International vs. Franklin Electric Co | Matthews International vs. Griffon |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |