Correlation Between Emerging Europe and Matthews India
Can any of the company-specific risk be diversified away by investing in both Emerging Europe and Matthews India 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 Emerging Europe and Matthews India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Europe Fund and Matthews India Fund, you can compare the effects of market volatilities on Emerging Europe and Matthews India 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 Emerging Europe with a short position of Matthews India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Europe and Matthews India.
Diversification Opportunities for Emerging Europe and Matthews India
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerging and Matthews is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Europe Fund and Matthews India Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews India and Emerging Europe 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 Emerging Europe Fund are associated (or correlated) with Matthews India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews India has no effect on the direction of Emerging Europe i.e., Emerging Europe and Matthews India go up and down completely randomly.
Pair Corralation between Emerging Europe and Matthews India
If you would invest 2,891 in Matthews India Fund on September 1, 2024 and sell it today you would earn a total of 101.00 from holding Matthews India Fund or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Emerging Europe Fund vs. Matthews India Fund
Performance |
| Timeline |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Matthews India |
Emerging Europe and Matthews India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Europe and Matthews India
The main advantage of trading using opposite Emerging Europe and Matthews India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Europe position performs unexpectedly, Matthews India 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 India will offset losses from the drop in Matthews India's long position.| Emerging Europe vs. Dreyfus Technology Growth | Emerging Europe vs. Allianzgi Technology Fund | Emerging Europe vs. Technology Ultrasector Profund | Emerging Europe vs. Blackrock Science Technology |
| Matthews India vs. Matthews China Fund | Matthews India vs. Matthews Pacific Tiger | Matthews India vs. Eaton Vance Greater | Matthews India vs. Morgan Stanley India |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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