Correlation Between Matthews Asia and Intrepid Endurance
Can any of the company-specific risk be diversified away by investing in both Matthews Asia and Intrepid Endurance 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 Asia and Intrepid Endurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Asia Dividend and Intrepid Endurance Fund, you can compare the effects of market volatilities on Matthews Asia and Intrepid Endurance 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 Asia with a short position of Intrepid Endurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Intrepid Endurance.
Diversification Opportunities for Matthews Asia and Intrepid Endurance
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Matthews and Intrepid is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Dividend and Intrepid Endurance Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Endurance and Matthews Asia 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 Asia Dividend are associated (or correlated) with Intrepid Endurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Endurance has no effect on the direction of Matthews Asia i.e., Matthews Asia and Intrepid Endurance go up and down completely randomly.
Pair Corralation between Matthews Asia and Intrepid Endurance
Assuming the 90 days horizon Matthews Asia Dividend is expected to under-perform the Intrepid Endurance. But the mutual fund apears to be less risky and, when comparing its historical volatility, Matthews Asia Dividend is 1.24 times less risky than Intrepid Endurance. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Intrepid Endurance Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,602 in Intrepid Endurance Fund on October 26, 2024 and sell it today you would earn a total of 23.00 from holding Intrepid Endurance Fund or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 37.29% |
| Values | Daily Returns |
Matthews Asia Dividend vs. Intrepid Endurance Fund
Performance |
| Timeline |
| Matthews Asia Dividend |
| Intrepid Endurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Matthews Asia and Intrepid Endurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asia and Intrepid Endurance
The main advantage of trading using opposite Matthews Asia and Intrepid Endurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asia position performs unexpectedly, Intrepid Endurance 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 Intrepid Endurance will offset losses from the drop in Intrepid Endurance's long position.| Matthews Asia vs. Matthews Asian Growth | Matthews Asia vs. Matthews Pacific Tiger | Matthews Asia vs. Matthews Asia Growth | Matthews Asia vs. Matthews India Fund |
| Intrepid Endurance vs. Amg Yacktman Focused | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Heartland Value Plus | Intrepid Endurance vs. Appleseed Fund Appleseed |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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