Correlation Between Matthews International and National Fuel
Can any of the company-specific risk be diversified away by investing in both Matthews International and National Fuel 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 Matthews International and National Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews International and National Fuel Gas, you can compare the effects of market volatilities on Matthews International and National Fuel 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 Matthews International with a short position of National Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews International and National Fuel.
Diversification Opportunities for Matthews International and National Fuel
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Matthews and National is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Matthews International and National Fuel Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Fuel Gas and Matthews International 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 Matthews International are associated (or correlated) with National Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Fuel Gas has no effect on the direction of Matthews International i.e., Matthews International and National Fuel go up and down completely randomly.
Pair Corralation between Matthews International and National Fuel
Given the investment horizon of 90 days Matthews International is expected to under-perform the National Fuel. In addition to that, Matthews International is 2.02 times more volatile than National Fuel Gas. It trades about -0.02 of its total potential returns per unit of risk. National Fuel Gas is currently generating about -0.03 per unit of volatility. If you would invest 8,807 in National Fuel Gas on July 20, 2025 and sell it today you would lose (237.00) from holding National Fuel Gas or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews International vs. National Fuel Gas
Performance |
| Timeline |
| Matthews International |
| National Fuel Gas |
Matthews International and National Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews International and National Fuel
The main advantage of trading using opposite Matthews International and National Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews International position performs unexpectedly, National Fuel 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 National Fuel will offset losses from the drop in National Fuel's long position.| Matthews International vs. Compass Diversified Holdings | Matthews International vs. FTAI Infrastructure | Matthews International vs. Resolute Holdings Management, | Matthews International vs. T1 Energy |
| National Fuel vs. Antero Midstream Partners | National Fuel vs. Hess Midstream Partners | National Fuel vs. APA Corporation | National Fuel vs. Sunoco LP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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