Correlation Between Matthews Emerging and Fidelity Small
Can any of the company-specific risk be diversified away by investing in both Matthews Emerging and Fidelity Small 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 Emerging and Fidelity Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Emerging Markets and Fidelity Small Mid Cap, you can compare the effects of market volatilities on Matthews Emerging and Fidelity Small 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 Emerging with a short position of Fidelity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Emerging and Fidelity Small.
Diversification Opportunities for Matthews Emerging and Fidelity Small
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Matthews and Fidelity is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Emerging Markets and Fidelity Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small Mid and Matthews Emerging 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 Emerging Markets are associated (or correlated) with Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Mid has no effect on the direction of Matthews Emerging i.e., Matthews Emerging and Fidelity Small go up and down completely randomly.
Pair Corralation between Matthews Emerging and Fidelity Small
Given the investment horizon of 90 days Matthews Emerging Markets is expected to under-perform the Fidelity Small. But the etf apears to be less risky and, when comparing its historical volatility, Matthews Emerging Markets is 1.01 times less risky than Fidelity Small. The etf trades about -0.12 of its potential returns per unit of risk. The Fidelity Small Mid Cap is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,758 in Fidelity Small Mid Cap on November 7, 2024 and sell it today you would earn a total of 89.00 from holding Fidelity Small Mid Cap or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews Emerging Markets vs. Fidelity Small Mid Cap
Performance |
| Timeline |
| Matthews Emerging Markets |
| Fidelity Small Mid |
Matthews Emerging and Fidelity Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Emerging and Fidelity Small
The main advantage of trading using opposite Matthews Emerging and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Emerging position performs unexpectedly, Fidelity Small 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 Fidelity Small will offset losses from the drop in Fidelity Small's long position.| Matthews Emerging vs. Matthews China Discovery | Matthews Emerging vs. Morgan Stanley Pathway | Matthews Emerging vs. Neuberger Berman ETF | Matthews Emerging vs. Fidelity Small Mid Cap |
| Fidelity Small vs. Matthews China Discovery | Fidelity Small vs. Matthews Emerging Markets | Fidelity Small vs. Morgan Stanley Pathway | Fidelity Small vs. Neuberger Berman ETF |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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