Correlation Between Mega Matrix and GATX

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

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

Diversification Opportunities for Mega Matrix and GATX

-0.15

Correlation Coefficient

Mega Matrix  GATX

Good diversification

The 3 months correlation between Mega and GATX is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mega Matrix Corp and GATX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GATX and Mega Matrix 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 Mega Matrix Corp are associated (or correlated) with GATX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GATX has no effect on the direction of Mega Matrix i.e., Mega Matrix and GATX go up and down completely randomly.

Pair Corralation between Mega Matrix and GATX

Considering the 90-day investment horizon Mega Matrix Corp is expected to under-perform the GATX. In addition to that, Mega Matrix is 5.38 times more volatile than GATX Corporation. It trades about -0.15 of its total potential returns per unit of risk. GATX Corporation is currently generating about 0.02 per unit of volatility. If you would invest  15,732  in GATX Corporation on December 26, 2024 and sell it today you would earn a total of  118.00  from holding GATX Corporation or generate 0.75% return on investment over 90 days.

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

Mega Matrix Corp  vs.  GATX Corp.

Mega Matrix Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mega Matrix 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 comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GATX

Risk-Adjusted Performance

Weak

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

Pair Trading with Mega Matrix and GATX

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

The idea behind Mega Matrix Corp and GATX Corporation 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.