Correlation Between Oberweis China and Matthews China
Can any of the company-specific risk be diversified away by investing in both Oberweis China and Matthews China 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 Oberweis China and Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oberweis China Opportunities and Matthews China Fund, you can compare the effects of market volatilities on Oberweis China and Matthews China 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 Oberweis China with a short position of Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis China and Matthews China.
Diversification Opportunities for Oberweis China and Matthews China
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oberweis and MATTHEWS is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis China Opportunities and Matthews China Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China and Oberweis China 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 Oberweis China Opportunities are associated (or correlated) with Matthews China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews China has no effect on the direction of Oberweis China i.e., Oberweis China and Matthews China go up and down completely randomly.
Pair Corralation between Oberweis China and Matthews China
Assuming the 90 days horizon Oberweis China Opportunities is expected to under-perform the Matthews China. But the mutual fund apears to be less risky and, when comparing its historical volatility, Oberweis China Opportunities is 1.3 times less risky than Matthews China. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Matthews China Fund is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,481 in Matthews China Fund on August 30, 2024 and sell it today you would lose (97.00) from holding Matthews China Fund or give up 6.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oberweis China Opportunities vs. Matthews China Fund
Performance |
| Timeline |
| Oberweis China Oppor |
| Matthews China |
Oberweis China and Matthews China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oberweis China and Matthews China
The main advantage of trading using opposite Oberweis China and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis China position performs unexpectedly, Matthews China 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 Matthews China will offset losses from the drop in Matthews China's long position.| Oberweis China vs. Matthews China Fund | Oberweis China vs. T Rowe Price | Oberweis China vs. Matthews India Fund | Oberweis China vs. Guinness Atkinson China |
| Matthews China vs. Matthews India Fund | Matthews China vs. Matthews Pacific Tiger | Matthews China vs. Matthews Asian Growth | Matthews China vs. Guinness Atkinson China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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