Correlation Between Amg Yacktman and Matthews Asia
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman 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 Amg Yacktman and Matthews Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Fund and Matthews Asia Dividend, you can compare the effects of market volatilities on Amg Yacktman 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 Amg Yacktman with a short position of Matthews Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and Matthews Asia.
Diversification Opportunities for Amg Yacktman and Matthews Asia
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Matthews is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Fund 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 Amg Yacktman 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 Amg Yacktman Fund 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 Amg Yacktman i.e., Amg Yacktman and Matthews Asia go up and down completely randomly.
Pair Corralation between Amg Yacktman and Matthews Asia
Assuming the 90 days horizon Amg Yacktman Fund is expected to under-perform the Matthews Asia. In addition to that, Amg Yacktman is 1.51 times more volatile than Matthews Asia Dividend. It trades about -0.11 of its total potential returns per unit of risk. Matthews Asia Dividend is currently generating about -0.1 per unit of volatility. If you would invest 1,470 in Matthews Asia Dividend on October 26, 2024 and sell it today you would lose (65.00) from holding Matthews Asia Dividend or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Yacktman Fund vs. Matthews Asia Dividend
Performance |
| Timeline |
| Amg Yacktman |
| Matthews Asia Dividend |
Amg Yacktman and Matthews Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and Matthews Asia
The main advantage of trading using opposite Amg Yacktman and Matthews Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman 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.| Amg Yacktman vs. Tiaa Cref Lifestyle Servative | Amg Yacktman vs. Guidepath Conservative Income | Amg Yacktman vs. Federated Hermes Conservative | Amg Yacktman vs. Jhancock Diversified Macro |
| Matthews Asia vs. Matthews Asian Growth | Matthews Asia vs. Matthews Pacific Tiger | Matthews Asia vs. Matthews Asia Growth | Matthews Asia vs. Matthews India 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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