Correlation Between High-yield Municipal and Matthews Asian
Can any of the company-specific risk be diversified away by investing in both High-yield Municipal and Matthews Asian 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 High-yield Municipal and Matthews Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Matthews Asian Growth, you can compare the effects of market volatilities on High-yield Municipal and Matthews Asian 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 High-yield Municipal with a short position of Matthews Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Municipal and Matthews Asian.
Diversification Opportunities for High-yield Municipal and Matthews Asian
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between High-yield and Matthews is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Matthews Asian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asian Growth and High-yield Municipal 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 High Yield Municipal Fund are associated (or correlated) with Matthews Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asian Growth has no effect on the direction of High-yield Municipal i.e., High-yield Municipal and Matthews Asian go up and down completely randomly.
Pair Corralation between High-yield Municipal and Matthews Asian
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.46 times more return on investment than Matthews Asian. However, High Yield Municipal Fund is 2.16 times less risky than Matthews Asian. It trades about 0.16 of its potential returns per unit of risk. Matthews Asian Growth is currently generating about -0.18 per unit of risk. If you would invest 887.00 in High Yield Municipal Fund on August 30, 2024 and sell it today you would earn a total of 12.00 from holding High Yield Municipal Fund or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Matthews Asian Growth
Performance |
| Timeline |
| High Yield Municipal |
| Matthews Asian Growth |
High-yield Municipal and Matthews Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Municipal and Matthews Asian
The main advantage of trading using opposite High-yield Municipal and Matthews Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Municipal position performs unexpectedly, Matthews Asian 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 Matthews Asian will offset losses from the drop in Matthews Asian's long position.| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
| Matthews Asian vs. Matthews Asia Dividend | Matthews Asian vs. Wcm Focused International | Matthews Asian vs. Invesco Disciplined Equity | Matthews Asian vs. Matthews Asian Growth |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |