Correlation Between Voya Russia and Matthews China
Can any of the company-specific risk be diversified away by investing in both Voya Russia 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 Voya Russia and Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Russia Fund and Matthews China Fund, you can compare the effects of market volatilities on Voya Russia 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 Voya Russia with a short position of Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and Matthews China.
Diversification Opportunities for Voya Russia and Matthews China
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Matthews is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Matthews China Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China and Voya Russia 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 Voya Russia Fund 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 Voya Russia i.e., Voya Russia and Matthews China go up and down completely randomly.
Pair Corralation between Voya Russia and Matthews China
If you would invest 1,229 in Matthews China Fund on September 1, 2024 and sell it today you would earn a total of 153.00 from holding Matthews China Fund or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Voya Russia Fund vs. Matthews China Fund
Performance |
| Timeline |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Matthews China |
Voya Russia and Matthews China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Russia and Matthews China
The main advantage of trading using opposite Voya Russia and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Russia 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.| Voya Russia vs. California High Yield Municipal | Voya Russia vs. Legg Mason Partners | Voya Russia vs. Morningstar Aggressive Growth | Voya Russia vs. Metropolitan West High |
| 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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