Correlation Between Matthews Pacific and Baron New
Can any of the company-specific risk be diversified away by investing in both Matthews Pacific and Baron New 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 Pacific and Baron New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Pacific Tiger and Baron New Asia, you can compare the effects of market volatilities on Matthews Pacific and Baron New 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 Pacific with a short position of Baron New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Pacific and Baron New.
Diversification Opportunities for Matthews Pacific and Baron New
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matthews and Baron is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Pacific Tiger and Baron New Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron New Asia and Matthews Pacific 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 Pacific Tiger are associated (or correlated) with Baron New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron New Asia has no effect on the direction of Matthews Pacific i.e., Matthews Pacific and Baron New go up and down completely randomly.
Pair Corralation between Matthews Pacific and Baron New
Assuming the 90 days horizon Matthews Pacific Tiger is expected to generate 1.45 times more return on investment than Baron New. However, Matthews Pacific is 1.45 times more volatile than Baron New Asia. It trades about -0.09 of its potential returns per unit of risk. Baron New Asia is currently generating about -0.2 per unit of risk. If you would invest 1,991 in Matthews Pacific Tiger on September 1, 2024 and sell it today you would lose (40.00) from holding Matthews Pacific Tiger or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 18.18% |
| Values | Daily Returns |
Matthews Pacific Tiger vs. Baron New Asia
Performance |
| Timeline |
| Matthews Pacific Tiger |
| Baron New Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Matthews Pacific and Baron New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Pacific and Baron New
The main advantage of trading using opposite Matthews Pacific and Baron New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Pacific position performs unexpectedly, Baron New 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 Baron New will offset losses from the drop in Baron New's long position.| Matthews Pacific vs. Matthews Asia Growth | Matthews Pacific vs. Matthews Japan Fund | Matthews Pacific vs. Matthews China Fund |
| Baron New vs. Baron Real Estate | Baron New vs. Baron Real Estate | Baron New vs. Baron Real Estate | Baron New vs. Baron Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |