Correlation Between Matthews China and MKAM ETF
Can any of the company-specific risk be diversified away by investing in both Matthews China and MKAM ETF 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 China and MKAM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews China Discovery and MKAM ETF, you can compare the effects of market volatilities on Matthews China and MKAM ETF 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 China with a short position of MKAM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews China and MKAM ETF.
Diversification Opportunities for Matthews China and MKAM ETF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Matthews and MKAM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Discovery and MKAM ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MKAM ETF and Matthews China 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 China Discovery are associated (or correlated) with MKAM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MKAM ETF has no effect on the direction of Matthews China i.e., Matthews China and MKAM ETF go up and down completely randomly.
Pair Corralation between Matthews China and MKAM ETF
If you would invest 0.00 in MKAM ETF on January 10, 2025 and sell it today you would earn a total of 0.00 from holding MKAM ETF or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.98% |
| Values | Daily Returns |
Matthews China Discovery vs. MKAM ETF
Performance |
| Timeline |
| Matthews China Discovery |
| MKAM ETF |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Matthews China and MKAM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews China and MKAM ETF
The main advantage of trading using opposite Matthews China and MKAM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China position performs unexpectedly, MKAM ETF 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 MKAM ETF will offset losses from the drop in MKAM ETF's long position.| Matthews China vs. Matthews Emerging Markets | Matthews China vs. Morgan Stanley Pathway | Matthews China vs. Neuberger Berman ETF | Matthews China vs. Fidelity Small Mid Cap |
| MKAM ETF vs. FT Vest Equity | MKAM ETF vs. Northern Lights | MKAM ETF vs. Dimensional International High | MKAM ETF vs. First Trust Exchange Traded |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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