Correlation Between Mattr Corp and Westaim Corp

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

By analyzing existing cross correlation between Mattr Corp and Westaim Corp, you can compare the effects of market volatilities on Mattr Corp and Westaim 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 Mattr Corp with a short position of Westaim Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattr Corp and Westaim Corp.

Diversification Opportunities for Mattr Corp and Westaim Corp

-0.4

Correlation Coefficient

Mattr Corp  Westaim Corp

Very good diversification

The 3 months correlation between Mattr and Westaim is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mattr Corp and Westaim Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westaim Corp and Mattr Corp 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 Mattr Corp are associated (or correlated) with Westaim Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westaim Corp has no effect on the direction of Mattr Corp i.e., Mattr Corp and Westaim Corp go up and down completely randomly.

Pair Corralation between Mattr Corp and Westaim Corp

Assuming the 90 days trading horizon Mattr Corp is expected to generate 2.02 times more return on investment than Westaim Corp. However, Mattr Corp is 2.02 times more volatile than Westaim Corp. It trades about 0.19 of its potential returns per unit of risk. Westaim Corp is currently generating about 0.01 per unit of risk. If you would invest  943.00  in Mattr Corp on April 22, 2025 and sell it today you would earn a total of  338.00  from holding Mattr Corp or generate 35.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

Mattr Corp  vs.  Westaim Corp

Mattr Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mattr Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Mattr Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Westaim Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Westaim Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Westaim Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Mattr Corp and Westaim Corp

The main advantage of trading using opposite Mattr Corp and Westaim Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattr Corp position performs unexpectedly, Westaim 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 Westaim Corp will offset losses from the drop in Westaim Corp's long position.

The idea behind Mattr Corp and Westaim Corp 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.