Correlation Between Fidelity Emerging and Matthews Asian
Can any of the company-specific risk be diversified away by investing in both Fidelity Emerging 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 Fidelity Emerging and Matthews Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Emerging Asia and Matthews Asian Growth, you can compare the effects of market volatilities on Fidelity Emerging 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 Fidelity Emerging with a short position of Matthews Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Emerging and Matthews Asian.
Diversification Opportunities for Fidelity Emerging and Matthews Asian
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Matthews is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Emerging Asia 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 Fidelity Emerging 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 Fidelity Emerging Asia 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 Fidelity Emerging i.e., Fidelity Emerging and Matthews Asian go up and down completely randomly.
Pair Corralation between Fidelity Emerging and Matthews Asian
Assuming the 90 days horizon Fidelity Emerging Asia is expected to generate 1.64 times more return on investment than Matthews Asian. However, Fidelity Emerging is 1.64 times more volatile than Matthews Asian Growth. It trades about 0.0 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 4,841 in Fidelity Emerging Asia on November 3, 2024 and sell it today you would lose (2.00) from holding Fidelity Emerging Asia or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Emerging Asia vs. Matthews Asian Growth
Performance |
| Timeline |
| Fidelity Emerging Asia |
| Matthews Asian Growth |
Fidelity Emerging and Matthews Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Emerging and Matthews Asian
The main advantage of trading using opposite Fidelity Emerging and Matthews Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Emerging 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.| Fidelity Emerging vs. Fidelity China Region | Fidelity Emerging vs. Fidelity Emerging Markets | Fidelity Emerging vs. Fidelity Canada Fund | Fidelity Emerging vs. Fidelity Pacific Basin |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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