Correlation Between Matthews China and Invesco Bloomberg
Can any of the company-specific risk be diversified away by investing in both Matthews China and Invesco Bloomberg 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 Invesco Bloomberg 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 Invesco Bloomberg Pricing, you can compare the effects of market volatilities on Matthews China and Invesco Bloomberg 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 Invesco Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews China and Invesco Bloomberg.
Diversification Opportunities for Matthews China and Invesco Bloomberg
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Matthews and Invesco is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Discovery and Invesco Bloomberg Pricing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Bloomberg Pricing 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 Invesco Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Bloomberg Pricing has no effect on the direction of Matthews China i.e., Matthews China and Invesco Bloomberg go up and down completely randomly.
Pair Corralation between Matthews China and Invesco Bloomberg
Given the investment horizon of 90 days Matthews China Discovery is expected to under-perform the Invesco Bloomberg. In addition to that, Matthews China is 1.79 times more volatile than Invesco Bloomberg Pricing. It trades about -0.32 of its total potential returns per unit of risk. Invesco Bloomberg Pricing is currently generating about -0.36 per unit of volatility. If you would invest 8,620 in Invesco Bloomberg Pricing on October 9, 2024 and sell it today you would lose (464.00) from holding Invesco Bloomberg Pricing or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews China Discovery vs. Invesco Bloomberg Pricing
Performance |
| Timeline |
| Matthews China Discovery |
| Invesco Bloomberg Pricing |
Matthews China and Invesco Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews China and Invesco Bloomberg
The main advantage of trading using opposite Matthews China and Invesco Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China position performs unexpectedly, Invesco Bloomberg 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 Invesco Bloomberg will offset losses from the drop in Invesco Bloomberg's long position.| Matthews China vs. JPMorgan Fundamental Data | Matthews China vs. Davis Select International | Matthews China vs. Dimensional ETF Trust | Matthews China vs. Principal Value ETF |
| Invesco Bloomberg vs. JPMorgan Fundamental Data | Invesco Bloomberg vs. Matthews China Discovery | Invesco Bloomberg vs. Davis Select International | Invesco Bloomberg vs. Dimensional ETF Trust |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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