Correlation Between Guinness Atkinson and Matthews China
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson and Matthews China 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 Guinness Atkinson and Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Asia and Matthews China Fund, you can compare the effects of market volatilities on Guinness Atkinson and Matthews China 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 Guinness Atkinson with a short position of Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Matthews China.
Diversification Opportunities for Guinness Atkinson and Matthews China
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guinness and Matthews is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Asia and Matthews China Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China and Guinness Atkinson 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 Guinness Atkinson Asia are associated (or correlated) with Matthews China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews China has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Matthews China go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Matthews China
Assuming the 90 days horizon Guinness Atkinson Asia is expected to generate 0.54 times more return on investment than Matthews China. However, Guinness Atkinson Asia is 1.86 times less risky than Matthews China. It trades about -0.03 of its potential returns per unit of risk. Matthews China Fund is currently generating about -0.09 per unit of risk. If you would invest 1,509 in Guinness Atkinson Asia on September 1, 2024 and sell it today you would lose (13.00) from holding Guinness Atkinson Asia or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guinness Atkinson Asia vs. Matthews China Fund
Performance |
| Timeline |
| Guinness Atkinson Asia |
| Matthews China |
Guinness Atkinson and Matthews China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Matthews China
The main advantage of trading using opposite Guinness Atkinson and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson position performs unexpectedly, Matthews China 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 China will offset losses from the drop in Matthews China's long position.| Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Global |
| Matthews China vs. Matthews India Fund | Matthews China vs. Matthews Pacific Tiger | Matthews China vs. Matthews Asian Growth | Matthews China vs. Guinness Atkinson China |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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