Correlation Between Matthews China and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Matthews China and Nuveen Winslow 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 Nuveen Winslow 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 Nuveen Winslow Large Cap, you can compare the effects of market volatilities on Matthews China and Nuveen Winslow 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 Nuveen Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews China and Nuveen Winslow.
Diversification Opportunities for Matthews China and Nuveen Winslow
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Matthews and Nuveen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Discovery and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large 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 Nuveen Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Matthews China i.e., Matthews China and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Matthews China and Nuveen Winslow
Given the investment horizon of 90 days Matthews China Discovery is expected to generate 1.5 times more return on investment than Nuveen Winslow. However, Matthews China is 1.5 times more volatile than Nuveen Winslow Large Cap. It trades about 0.17 of its potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about -0.09 per unit of risk. If you would invest 2,621 in Matthews China Discovery on November 28, 2024 and sell it today you would earn a total of 131.00 from holding Matthews China Discovery or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews China Discovery vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Matthews China Discovery |
| Nuveen Winslow Large |
Matthews China and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews China and Nuveen Winslow
The main advantage of trading using opposite Matthews China and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China position performs unexpectedly, Nuveen Winslow 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 Nuveen Winslow will offset losses from the drop in Nuveen Winslow's long position.| Matthews China vs. JPMorgan Fundamental Data | Matthews China vs. Vanguard Mid Cap Index | Matthews China vs. SPDR SP 400 | Matthews China vs. SPDR SP 400 |
| Nuveen Winslow vs. FT Vest Equity | Nuveen Winslow vs. Northern Lights | Nuveen Winslow vs. Dimensional International High | Nuveen Winslow 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |