Correlation Between Artisan Global and Matthews China
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Matthews China 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 Artisan Global and Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Opportunities and Matthews China Small, you can compare the effects of market volatilities on Artisan Global and Matthews China 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 Artisan Global with a short position of Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Matthews China.
Diversification Opportunities for Artisan Global and Matthews China
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Matthews is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Matthews China Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China Small and Artisan Global 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 Artisan Global Opportunities are associated (or correlated) with Matthews China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews China Small has no effect on the direction of Artisan Global i.e., Artisan Global and Matthews China go up and down completely randomly.
Pair Corralation between Artisan Global and Matthews China
Assuming the 90 days horizon Artisan Global Opportunities is expected to generate 0.51 times more return on investment than Matthews China. However, Artisan Global Opportunities is 1.96 times less risky than Matthews China. It trades about 0.08 of its potential returns per unit of risk. Matthews China Small is currently generating about 0.0 per unit of risk. If you would invest 3,380 in Artisan Global Opportunities on September 1, 2024 and sell it today you would earn a total of 298.00 from holding Artisan Global Opportunities or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Opportunities vs. Matthews China Small
Performance |
| Timeline |
| Artisan Global Oppor |
| Matthews China Small |
Artisan Global and Matthews China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Matthews China
The main advantage of trading using opposite Artisan Global and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Matthews China 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 China will offset losses from the drop in Matthews China's long position.| Artisan Global vs. Artisan Global Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Small Cap |
| Matthews China vs. Matthews China Dividend | Matthews China vs. Matthews Asia Innovators | Matthews China vs. Matthews Asia Small | Matthews China vs. Matthews China Fund |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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