Correlation Between Matthews Asian and Matthews Korea
Can any of the company-specific risk be diversified away by investing in both Matthews Asian and Matthews Korea 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 Matthews Asian and Matthews Korea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Asian Growth and Matthews Korea Fund, you can compare the effects of market volatilities on Matthews Asian and Matthews Korea 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 Matthews Asian with a short position of Matthews Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asian and Matthews Korea.
Diversification Opportunities for Matthews Asian and Matthews Korea
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matthews and Matthews is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asian Growth and Matthews Korea Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Korea and Matthews Asian 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 Matthews Asian Growth are associated (or correlated) with Matthews Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Korea has no effect on the direction of Matthews Asian i.e., Matthews Asian and Matthews Korea go up and down completely randomly.
Pair Corralation between Matthews Asian and Matthews Korea
If you would invest 428.00 in Matthews Korea Fund on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Matthews Korea Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Matthews Asian Growth vs. Matthews Korea Fund
Performance |
| Timeline |
| Matthews Asian Growth |
| Matthews Korea |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Matthews Asian and Matthews Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asian and Matthews Korea
The main advantage of trading using opposite Matthews Asian and Matthews Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asian position performs unexpectedly, Matthews Korea 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 Korea will offset losses from the drop in Matthews Korea's long position.| Matthews Asian vs. Matthews Asia Dividend | Matthews Asian vs. Wcm Focused International | Matthews Asian vs. Invesco Disciplined Equity | Matthews Asian vs. Matthews Asian Growth |
| Matthews Korea vs. Matthews Japan Fund | Matthews Korea vs. Matthews Pacific Tiger | Matthews Korea vs. Matthews Asia Innovators | Matthews Korea vs. Matthews Asian 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |