Correlation Between China Fund and Dividend Growth
Can any of the company-specific risk be diversified away by investing in both China Fund and Dividend Growth 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 China Fund and Dividend Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Fund and Dividend Growth Split, you can compare the effects of market volatilities on China Fund and Dividend Growth 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 China Fund with a short position of Dividend Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Dividend Growth.
Diversification Opportunities for China Fund and Dividend Growth
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Dividend is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding China Fund and Dividend Growth Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend Growth Split and China Fund 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 China Fund are associated (or correlated) with Dividend Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend Growth Split has no effect on the direction of China Fund i.e., China Fund and Dividend Growth go up and down completely randomly.
Pair Corralation between China Fund and Dividend Growth
If you would invest 412.00 in Dividend Growth Split on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Dividend Growth Split or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
China Fund vs. Dividend Growth Split
Performance |
| Timeline |
| China Fund |
| Dividend Growth Split |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Fund and Dividend Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Dividend Growth
The main advantage of trading using opposite China Fund and Dividend Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund position performs unexpectedly, Dividend Growth 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 Dividend Growth will offset losses from the drop in Dividend Growth's long position.| China Fund vs. Ashmore Group Plc | China Fund vs. Mexico Equity And | China Fund vs. Western Asset Managed | China Fund vs. Blackrock Muniholdings Quality |
| Dividend Growth vs. Financial 15 Split | Dividend Growth vs. SEI Investments | Dividend Growth vs. Oxford Lane Capital | Dividend Growth vs. Blackstone Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |