Correlation Between Matthews Asia and Sit Dividend
Can any of the company-specific risk be diversified away by investing in both Matthews Asia and Sit Dividend 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 Sit Dividend 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 Sit Dividend Growth, you can compare the effects of market volatilities on Matthews Asia and Sit Dividend 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 Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Sit Dividend.
Diversification Opportunities for Matthews Asia and Sit Dividend
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Matthews and Sit is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Dividend and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth 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 Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Matthews Asia i.e., Matthews Asia and Sit Dividend go up and down completely randomly.
Pair Corralation between Matthews Asia and Sit Dividend
Assuming the 90 days horizon Matthews Asia is expected to generate 1.8 times less return on investment than Sit Dividend. In addition to that, Matthews Asia is 1.23 times more volatile than Sit Dividend Growth. It trades about 0.07 of its total potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.16 per unit of volatility. If you would invest 1,326 in Sit Dividend Growth on August 29, 2024 and sell it today you would earn a total of 478.00 from holding Sit Dividend Growth or generate 36.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews Asia Dividend vs. Sit Dividend Growth
Performance |
| Timeline |
| Matthews Asia Dividend |
| Sit Dividend Growth |
Matthews Asia and Sit Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asia and Sit Dividend
The main advantage of trading using opposite Matthews Asia and Sit Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asia position performs unexpectedly, Sit Dividend 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 Sit Dividend will offset losses from the drop in Sit Dividend'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 |
| Sit Dividend vs. Matthews Asia Dividend | Sit Dividend vs. Sit Dividend Growth | Sit Dividend vs. Jpmorgan Unconstrained Debt | Sit Dividend vs. Harbor Vertible Securities |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |