Correlation Between Matthews Emerging and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Matthews Emerging and Exchange Traded 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 Exchange Traded 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 Exchange Traded Concepts, you can compare the effects of market volatilities on Matthews Emerging and Exchange Traded 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 Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Emerging and Exchange Traded.
Diversification Opportunities for Matthews Emerging and Exchange Traded
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Matthews and Exchange is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Emerging Markets and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Matthews Emerging i.e., Matthews Emerging and Exchange Traded go up and down completely randomly.
Pair Corralation between Matthews Emerging and Exchange Traded
If you would invest 1,999 in Exchange Traded Concepts on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Exchange Traded Concepts or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.54% |
| Values | Daily Returns |
Matthews Emerging Markets vs. Exchange Traded Concepts
Performance |
| Timeline |
| Matthews Emerging Markets |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Matthews Emerging and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Emerging and Exchange Traded
The main advantage of trading using opposite Matthews Emerging and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Emerging position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.| Matthews Emerging vs. Invesco PureBeta MSCI | Matthews Emerging vs. Aquagold International | Matthews Emerging vs. Morningstar Unconstrained Allocation | Matthews Emerging vs. High Yield Municipal Fund |
| Exchange Traded vs. Matthews China Active | Exchange Traded vs. MAYBANK EMERGING ETF | Exchange Traded vs. Matthews Emerging Markets | Exchange Traded vs. JP Morgan 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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