Correlation Between PCB Tec and Matrix

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

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

Diversification Opportunities for PCB Tec and Matrix

0.85

Correlation Coefficient

PCB Tec  Matrix

Very poor diversification

The 3 months correlation between PCB and Matrix is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding PCB Tec and Matrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix and PCB Tec 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 PCB Tec are associated (or correlated) with Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix has no effect on the direction of PCB Tec i.e., PCB Tec and Matrix go up and down completely randomly.

Pair Corralation between PCB Tec and Matrix

Assuming the 90 days trading horizon PCB Tec is expected to generate 1.23 times less return on investment than Matrix. In addition to that, PCB Tec is 1.93 times more volatile than Matrix. It trades about 0.17 of its total potential returns per unit of risk. Matrix is currently generating about 0.4 per unit of volatility. If you would invest  853,569  in Matrix on April 21, 2025 and sell it today you would earn a total of  385,431  from holding Matrix or generate 45.16% return on investment over 90 days.

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

PCB Tec  vs.  Matrix

PCB Tec

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PCB Tec are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, PCB Tec sustained solid returns over the last few months and may actually be approaching a breakup point.

Matrix

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Matrix sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PCB Tec and Matrix

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

The idea behind PCB Tec and Matrix 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.