Correlation Between Matthews Korea and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Matthews Korea and Guinness Atkinson 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 Korea and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Korea Fund and Guinness Atkinson Global, you can compare the effects of market volatilities on Matthews Korea and Guinness Atkinson 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 Korea with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Korea and Guinness Atkinson.
Diversification Opportunities for Matthews Korea and Guinness Atkinson
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Matthews and Guinness is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Korea Fund and Guinness Atkinson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Global and Matthews Korea 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 Korea Fund are associated (or correlated) with Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Global has no effect on the direction of Matthews Korea i.e., Matthews Korea and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Matthews Korea and Guinness Atkinson
If you would invest 6,185 in Guinness Atkinson Global on September 1, 2024 and sell it today you would earn a total of 195.00 from holding Guinness Atkinson Global or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Matthews Korea Fund vs. Guinness Atkinson Global
Performance |
| Timeline |
| Matthews Korea |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Guinness Atkinson Global |
Matthews Korea and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Korea and Guinness Atkinson
The main advantage of trading using opposite Matthews Korea and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Korea position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Matthews Korea vs. Matthews Japan Fund | Matthews Korea vs. Matthews Pacific Tiger | Matthews Korea vs. Matthews Asia Innovators | Matthews Korea vs. Matthews Asian Growth |
| Guinness Atkinson vs. Guinness Atkinson Asia | Guinness Atkinson vs. Guinness Atkinson China | Guinness Atkinson vs. Guinness Atkinson Global | Guinness Atkinson vs. Guinness Atkinson Alternative |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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