Correlation Between Matthews Korea and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Matthews Korea and Fidelity Series 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 Korea and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Korea Fund and Fidelity Series Canada, you can compare the effects of market volatilities on Matthews Korea and Fidelity Series 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 Korea with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Korea and Fidelity Series.
Diversification Opportunities for Matthews Korea and Fidelity Series
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matthews and Fidelity is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Korea Fund and Fidelity Series Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Canada and Matthews Korea 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 Korea Fund are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Canada has no effect on the direction of Matthews Korea i.e., Matthews Korea and Fidelity Series go up and down completely randomly.
Pair Corralation between Matthews Korea and Fidelity Series
If you would invest 2,636 in Matthews Korea Fund on January 17, 2024 and sell it today you would earn a total of 0.00 from holding Matthews Korea Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Matthews Korea Fund vs. Fidelity Series Canada
Performance |
| Timeline |
| Matthews Korea |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fidelity Series Canada |
Matthews Korea and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Korea and Fidelity Series
The main advantage of trading using opposite Matthews Korea and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Korea position performs unexpectedly, Fidelity Series 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 Fidelity Series will offset losses from the drop in Fidelity Series' long position.| Matthews Korea vs. Qs Small Capitalization | Matthews Korea vs. Rbc Small Cap | Matthews Korea vs. Us Small Cap | Matthews Korea vs. Ancorathelen Small Mid Cap |
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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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