Correlation Between Washington Mutual and Matthews Asian
Can any of the company-specific risk be diversified away by investing in both Washington Mutual 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 Washington Mutual and Matthews Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Matthews Asian Growth, you can compare the effects of market volatilities on Washington Mutual 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 Washington Mutual with a short position of Matthews Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Matthews Asian.
Diversification Opportunities for Washington Mutual and Matthews Asian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Washington and Matthews is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors 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 Washington Mutual 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 Washington Mutual Investors 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 Washington Mutual i.e., Washington Mutual and Matthews Asian go up and down completely randomly.
Pair Corralation between Washington Mutual and Matthews Asian
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 0.9 times more return on investment than Matthews Asian. However, Washington Mutual Investors is 1.11 times less risky than Matthews Asian. It trades about 0.29 of its potential returns per unit of risk. Matthews Asian Growth is currently generating about 0.0 per unit of risk. If you would invest 6,150 in Washington Mutual Investors on November 3, 2024 and sell it today you would earn a total of 251.00 from holding Washington Mutual Investors or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Washington Mutual Investors vs. Matthews Asian Growth
Performance |
| Timeline |
| Washington Mutual |
| Matthews Asian Growth |
Washington Mutual and Matthews Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and Matthews Asian
The main advantage of trading using opposite Washington Mutual and Matthews Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual 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.| Washington Mutual vs. Neuberger Berman Real | Washington Mutual vs. Dunham Real Estate | Washington Mutual vs. Real Estate Ultrasector | Washington Mutual vs. Texton Property |
| Matthews Asian vs. Matthews Pacific Tiger | Matthews Asian vs. Matthews China Fund | Matthews Asian vs. Matthews Asia Dividend | Matthews Asian vs. Matthews Asia 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |