Correlation Between Sit Dividend and Matthews Asia
Can any of the company-specific risk be diversified away by investing in both Sit Dividend and Matthews Asia 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 Sit Dividend and Matthews Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Dividend Growth and Matthews Asia Dividend, you can compare the effects of market volatilities on Sit Dividend and Matthews Asia 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 Sit Dividend with a short position of Matthews Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Dividend and Matthews Asia.
Diversification Opportunities for Sit Dividend and Matthews Asia
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sit and Matthews is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sit Dividend Growth and Matthews Asia Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asia Dividend and Sit Dividend 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 Sit Dividend Growth are associated (or correlated) with Matthews Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asia Dividend has no effect on the direction of Sit Dividend i.e., Sit Dividend and Matthews Asia go up and down completely randomly.
Pair Corralation between Sit Dividend and Matthews Asia
Assuming the 90 days horizon Sit Dividend Growth is expected to generate 0.99 times more return on investment than Matthews Asia. However, Sit Dividend Growth is 1.01 times less risky than Matthews Asia. It trades about 0.1 of its potential returns per unit of risk. Matthews Asia Dividend is currently generating about -0.17 per unit of risk. If you would invest 1,752 in Sit Dividend Growth on August 25, 2024 and sell it today you would earn a total of 29.00 from holding Sit Dividend Growth or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Dividend Growth vs. Matthews Asia Dividend
Performance |
| Timeline |
| Sit Dividend Growth |
| Matthews Asia Dividend |
Sit Dividend and Matthews Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Dividend and Matthews Asia
The main advantage of trading using opposite Sit Dividend and Matthews Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Dividend position performs unexpectedly, Matthews Asia 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 Asia will offset losses from the drop in Matthews Asia's long position.| Sit Dividend vs. Matthews Asia Dividend | Sit Dividend vs. Sit Dividend Growth | Sit Dividend vs. Jpmorgan Unconstrained Debt | Sit Dividend vs. Harbor Vertible Securities |
| Matthews Asia vs. Matthews Pacific Tiger | Matthews Asia vs. Sit Dividend Growth | Matthews Asia vs. Harbor Vertible Securities | Matthews Asia vs. Jpmorgan Unconstrained Debt |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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