Correlation Between SmartETFs Dividend and Matthews Emerging
Can any of the company-specific risk be diversified away by investing in both SmartETFs Dividend and Matthews Emerging 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 SmartETFs Dividend and Matthews Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartETFs Dividend Builder and Matthews Emerging Markets, you can compare the effects of market volatilities on SmartETFs Dividend and Matthews Emerging 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 SmartETFs Dividend with a short position of Matthews Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartETFs Dividend and Matthews Emerging.
Diversification Opportunities for SmartETFs Dividend and Matthews Emerging
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SmartETFs and Matthews is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SmartETFs Dividend Builder and Matthews Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Emerging Markets and SmartETFs Dividend 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 SmartETFs Dividend Builder are associated (or correlated) with Matthews Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Emerging Markets has no effect on the direction of SmartETFs Dividend i.e., SmartETFs Dividend and Matthews Emerging go up and down completely randomly.
Pair Corralation between SmartETFs Dividend and Matthews Emerging
Given the investment horizon of 90 days SmartETFs Dividend Builder is expected to generate 0.9 times more return on investment than Matthews Emerging. However, SmartETFs Dividend Builder is 1.12 times less risky than Matthews Emerging. It trades about 0.13 of its potential returns per unit of risk. Matthews Emerging Markets is currently generating about -0.07 per unit of risk. If you would invest 2,948 in SmartETFs Dividend Builder on September 4, 2024 and sell it today you would earn a total of 45.00 from holding SmartETFs Dividend Builder or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SmartETFs Dividend Builder vs. Matthews Emerging Markets
Performance |
| Timeline |
| SmartETFs Dividend |
| Matthews Emerging Markets |
SmartETFs Dividend and Matthews Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartETFs Dividend and Matthews Emerging
The main advantage of trading using opposite SmartETFs Dividend and Matthews Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartETFs Dividend position performs unexpectedly, Matthews Emerging 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 Emerging will offset losses from the drop in Matthews Emerging's long position.| SmartETFs Dividend vs. SmartETFs Asia Pacific | SmartETFs Dividend vs. Listed Funds Trust | SmartETFs Dividend vs. iShares AsiaPacific Dividend | SmartETFs Dividend vs. ProShares MSCI Emerging |
| Matthews Emerging vs. Matthews Asia Innovators | Matthews Emerging vs. Columbia EM Core | Matthews Emerging vs. MAYBANK EMERGING ETF | Matthews Emerging vs. Matthews China Active |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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