Correlation Between Matthews China and Artisan Global
Can any of the company-specific risk be diversified away by investing in both Matthews China and Artisan Global 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 Artisan Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews China Small and Artisan Global Opportunities, you can compare the effects of market volatilities on Matthews China and Artisan Global 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 Artisan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews China and Artisan Global.
Diversification Opportunities for Matthews China and Artisan Global
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matthews and Artisan is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Small and Artisan Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Oppor 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 Small are associated (or correlated) with Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Oppor has no effect on the direction of Matthews China i.e., Matthews China and Artisan Global go up and down completely randomly.
Pair Corralation between Matthews China and Artisan Global
Assuming the 90 days horizon Matthews China is expected to generate 11.9 times less return on investment than Artisan Global. In addition to that, Matthews China is 1.96 times more volatile than Artisan Global Opportunities. It trades about 0.0 of its total potential returns per unit of risk. Artisan Global Opportunities is currently generating about 0.08 per unit of volatility. If you would invest 3,380 in Artisan Global Opportunities on September 1, 2024 and sell it today you would earn a total of 298.00 from holding Artisan Global Opportunities or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews China Small vs. Artisan Global Opportunities
Performance |
| Timeline |
| Matthews China Small |
| Artisan Global Oppor |
Matthews China and Artisan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews China and Artisan Global
The main advantage of trading using opposite Matthews China and Artisan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China position performs unexpectedly, Artisan Global 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 Artisan Global will offset losses from the drop in Artisan Global's long position.| Matthews China vs. Matthews China Dividend | Matthews China vs. Matthews Asia Innovators | Matthews China vs. Matthews Asia Small | Matthews China vs. Matthews China Fund |
| Artisan Global vs. Artisan Global Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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