Correlation Between Matthews Asia and Sit Dividend
Can any of the company-specific risk be diversified away by investing in both Matthews Asia and Sit Dividend 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 Asia and Sit Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Asia Dividend and Sit Dividend Growth, you can compare the effects of market volatilities on Matthews Asia and Sit Dividend 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 Asia with a short position of Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Sit Dividend.
Diversification Opportunities for Matthews Asia and Sit Dividend
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Matthews and Sit is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Dividend and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth and Matthews Asia 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 Asia Dividend are associated (or correlated) with Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Matthews Asia i.e., Matthews Asia and Sit Dividend go up and down completely randomly.
Pair Corralation between Matthews Asia and Sit Dividend
Assuming the 90 days horizon Matthews Asia Dividend is expected to generate 0.89 times more return on investment than Sit Dividend. However, Matthews Asia Dividend is 1.12 times less risky than Sit Dividend. It trades about 0.04 of its potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.03 per unit of risk. If you would invest 1,317 in Matthews Asia Dividend on November 3, 2024 and sell it today you would earn a total of 93.00 from holding Matthews Asia Dividend or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Matthews Asia Dividend vs. Sit Dividend Growth
Performance |
| Timeline |
| Matthews Asia Dividend |
| Sit Dividend Growth |
Matthews Asia and Sit Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asia and Sit Dividend
The main advantage of trading using opposite Matthews Asia and Sit Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asia position performs unexpectedly, Sit Dividend 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 Sit Dividend will offset losses from the drop in Sit Dividend's long position.| Matthews Asia vs. Matthews Pacific Tiger | Matthews Asia vs. Sit Dividend Growth | Matthews Asia vs. Harbor Vertible Securities | Matthews Asia vs. Jpmorgan Unconstrained Debt |
| Sit Dividend vs. Sit Dividend Growth | Sit Dividend vs. Harbor Large Cap | Sit Dividend vs. Janus Growth And | Sit Dividend vs. Boston Trust Midcap |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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