Correlation Between Matthews India and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Matthews India and Thrivent High 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 India and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews India Fund and Thrivent High Yield, you can compare the effects of market volatilities on Matthews India and Thrivent High 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 India with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews India and Thrivent High.
Diversification Opportunities for Matthews India and Thrivent High
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matthews and Thrivent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Matthews India Fund and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Matthews India 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 India Fund are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Matthews India i.e., Matthews India and Thrivent High go up and down completely randomly.
Pair Corralation between Matthews India and Thrivent High
Assuming the 90 days horizon Matthews India Fund is expected to generate 4.3 times more return on investment than Thrivent High. However, Matthews India is 4.3 times more volatile than Thrivent High Yield. It trades about 0.06 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.16 per unit of risk. If you would invest 2,591 in Matthews India Fund on September 3, 2024 and sell it today you would earn a total of 407.00 from holding Matthews India Fund or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews India Fund vs. Thrivent High Yield
Performance |
| Timeline |
| Matthews India |
| Thrivent High Yield |
Matthews India and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews India and Thrivent High
The main advantage of trading using opposite Matthews India and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews India position performs unexpectedly, Thrivent High 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 Thrivent High will offset losses from the drop in Thrivent High's long position.| Matthews India vs. Matthews China Fund | Matthews India vs. Matthews Pacific Tiger | Matthews India vs. Eaton Vance Greater | Matthews India vs. Morgan Stanley India |
| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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