Correlation Between Matthews Pacific and Core Fixed
Can any of the company-specific risk be diversified away by investing in both Matthews Pacific and Core Fixed 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 Pacific and Core Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Pacific Tiger and Core Fixed Income, you can compare the effects of market volatilities on Matthews Pacific and Core Fixed 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 Pacific with a short position of Core Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Pacific and Core Fixed.
Diversification Opportunities for Matthews Pacific and Core Fixed
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matthews and Core is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Pacific Tiger and Core Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Fixed Income and Matthews Pacific 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 Pacific Tiger are associated (or correlated) with Core Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Fixed Income has no effect on the direction of Matthews Pacific i.e., Matthews Pacific and Core Fixed go up and down completely randomly.
Pair Corralation between Matthews Pacific and Core Fixed
Assuming the 90 days horizon Matthews Pacific Tiger is expected to generate 3.85 times more return on investment than Core Fixed. However, Matthews Pacific is 3.85 times more volatile than Core Fixed Income. It trades about 0.03 of its potential returns per unit of risk. Core Fixed Income is currently generating about 0.07 per unit of risk. If you would invest 1,860 in Matthews Pacific Tiger on September 3, 2024 and sell it today you would earn a total of 94.00 from holding Matthews Pacific Tiger or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 69.88% |
| Values | Daily Returns |
Matthews Pacific Tiger vs. Core Fixed Income
Performance |
| Timeline |
| Matthews Pacific Tiger |
| Core Fixed Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Matthews Pacific and Core Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Pacific and Core Fixed
The main advantage of trading using opposite Matthews Pacific and Core Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Pacific position performs unexpectedly, Core Fixed 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 Core Fixed will offset losses from the drop in Core Fixed's long position.| Matthews Pacific vs. Matthews Asia Dividend | Matthews Pacific vs. Wcm Focused International | Matthews Pacific vs. Invesco Disciplined Equity | Matthews Pacific vs. Matthews Asian Growth |
| Core Fixed vs. International Portfolio International | Core Fixed vs. Strategic Equity Portfolio | Core Fixed vs. Large Cap E | Core Fixed vs. Small Cap Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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