Correlation Between Matthews Asia and Ubs All
Can any of the company-specific risk be diversified away by investing in both Matthews Asia and Ubs All 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 Ubs All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Asia Growth and Ubs All China, you can compare the effects of market volatilities on Matthews Asia and Ubs All 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 Ubs All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Ubs All.
Diversification Opportunities for Matthews Asia and Ubs All
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matthews and Ubs is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Growth and Ubs All China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs All China 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 Growth are associated (or correlated) with Ubs All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs All China has no effect on the direction of Matthews Asia i.e., Matthews Asia and Ubs All go up and down completely randomly.
Pair Corralation between Matthews Asia and Ubs All
If you would invest 394.00 in Ubs All China on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Ubs All China or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Matthews Asia Growth vs. Ubs All China
Performance |
| Timeline |
| Matthews Asia Growth |
| Ubs All China |
Matthews Asia and Ubs All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asia and Ubs All
The main advantage of trading using opposite Matthews Asia and Ubs All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asia position performs unexpectedly, Ubs All 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 Ubs All will offset losses from the drop in Ubs All's long position.| Matthews Asia vs. Matthews Japan Fund | Matthews Asia vs. Matthews Pacific Tiger | Matthews Asia vs. Matthews Asian Growth | Matthews Asia vs. Aquagold International |
| Ubs All vs. Pace Smallmedium Value | Ubs All vs. Pace International Equity | Ubs All vs. Pace International Equity | Ubs All vs. Ubs Allocation Fund |
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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