Correlation Between IShares SP and Mattr Corp

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

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

Diversification Opportunities for IShares SP and Mattr Corp

-0.09

Correlation Coefficient

IShares SP  Mattr Corp

Good diversification

The 3 months correlation between IShares and Mattr is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP Small Cap and Mattr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattr Corp and IShares SP 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 iShares SP Small Cap 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 IShares SP i.e., IShares SP and Mattr Corp go up and down completely randomly.

Pair Corralation between IShares SP and Mattr Corp

Assuming the 90 days trading horizon iShares SP Small Cap is expected to generate 0.4 times more return on investment than Mattr Corp. However, iShares SP Small Cap is 2.52 times less risky than Mattr Corp. It trades about 0.05 of its potential returns per unit of risk. Mattr Corp is currently generating about -0.19 per unit of risk. If you would invest  3,271  in iShares SP Small Cap on September 9, 2025 and sell it today you would earn a total of  103.00  from holding iShares SP Small Cap or generate 3.15% return on investment over 90 days.

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

iShares SP Small Cap  vs.  Mattr Corp

iShares SP Small

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in iShares SP Small Cap are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, IShares SP is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Mattr Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Mattr Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with IShares SP and Mattr Corp

The main advantage of trading using opposite IShares SP and Mattr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP 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.

The idea behind iShares SP Small Cap and Mattr 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.