Correlation Between Eagle Capital and Matrix Advisors

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

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

Diversification Opportunities for Eagle Capital and Matrix Advisors

0.07

Correlation Coefficient

Eagle Capital  Matrix Advisors

Significant diversification

The 3 months correlation between Eagle and Matrix is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth 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 Eagle Capital 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 Eagle Capital Growth 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 Eagle Capital i.e., Eagle Capital and Matrix Advisors go up and down completely randomly.

Pair Corralation between Eagle Capital and Matrix Advisors

Considering the 90-day investment horizon Eagle Capital Growth is expected to generate 1.72 times more return on investment than Matrix Advisors. However, Eagle Capital is 1.72 times more volatile than Matrix Advisors Dividend. It trades about 0.15 of its potential returns per unit of risk. Matrix Advisors Dividend is currently generating about -0.02 per unit of risk. If you would invest  975.00  in Eagle Capital Growth on September 15, 2025 and sell it today you would earn a total of  175.00  from holding Eagle Capital Growth or generate 17.95% return on investment over 90 days.

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

Eagle Capital Growth  vs.  Matrix Advisors Dividend

Eagle Capital Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Capital Growth are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Eagle Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Matrix Advisors Dividend

Risk-Adjusted Performance

Weakest

Over the last 90 days Matrix Advisors Dividend has generated negative risk-adjusted returns adding no value to fund investors. 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 Eagle Capital and Matrix Advisors

The main advantage of trading using opposite Eagle Capital and Matrix Advisors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital 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 Eagle Capital Growth 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.