Correlation Between Rockridge Resources and Mattr Corp
Can any of the company-specific risk be diversified away by investing in both Rockridge Resources 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 Rockridge Resources and Mattr Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockridge Resources and Mattr Corp, you can compare the effects of market volatilities on Rockridge Resources 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 Rockridge Resources with a short position of Mattr Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockridge Resources and Mattr Corp.
Diversification Opportunities for Rockridge Resources and Mattr Corp
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rockridge and Mattr is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Rockridge Resources and Mattr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattr Corp and Rockridge Resources 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 Rockridge Resources 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 Rockridge Resources i.e., Rockridge Resources and Mattr Corp go up and down completely randomly.
Pair Corralation between Rockridge Resources and Mattr Corp
Assuming the 90 days trading horizon Rockridge Resources is expected to generate 4.17 times more return on investment than Mattr Corp. However, Rockridge Resources is 4.17 times more volatile than Mattr Corp. It trades about 0.15 of its potential returns per unit of risk. Mattr Corp is currently generating about -0.2 per unit of risk. If you would invest 84.00 in Rockridge Resources on August 31, 2025 and sell it today you would earn a total of 110.00 from holding Rockridge Resources or generate 130.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rockridge Resources vs. Mattr Corp
Performance |
| Timeline |
| Rockridge Resources |
| Mattr Corp |
Rockridge Resources and Mattr Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockridge Resources and Mattr Corp
The main advantage of trading using opposite Rockridge Resources and Mattr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockridge Resources 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.| Rockridge Resources vs. First Majestic Silver | Rockridge Resources vs. Ivanhoe Energy | Rockridge Resources vs. Orezone Gold Corp | Rockridge Resources vs. Faraday Copper Corp |
| Mattr Corp vs. Cogeco Communications | Mattr Corp vs. FTI Foodtech International | Mattr Corp vs. Verizon Communications CDR | Mattr Corp vs. Big Rock Brewery |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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