Correlation Between Locorr Strategic and Matthews India
Can any of the company-specific risk be diversified away by investing in both Locorr Strategic and Matthews India 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 Locorr Strategic and Matthews India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Strategic Allocation and Matthews India Fund, you can compare the effects of market volatilities on Locorr Strategic and Matthews India 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 Locorr Strategic with a short position of Matthews India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Strategic and Matthews India.
Diversification Opportunities for Locorr Strategic and Matthews India
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Locorr and Matthews is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Strategic Allocation and Matthews India Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews India and Locorr Strategic 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 Locorr Strategic Allocation are associated (or correlated) with Matthews India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews India has no effect on the direction of Locorr Strategic i.e., Locorr Strategic and Matthews India go up and down completely randomly.
Pair Corralation between Locorr Strategic and Matthews India
Assuming the 90 days horizon Locorr Strategic Allocation is expected to generate 0.98 times more return on investment than Matthews India. However, Locorr Strategic Allocation is 1.03 times less risky than Matthews India. It trades about 0.13 of its potential returns per unit of risk. Matthews India Fund is currently generating about 0.04 per unit of risk. If you would invest 985.00 in Locorr Strategic Allocation on September 8, 2025 and sell it today you would earn a total of 51.00 from holding Locorr Strategic Allocation or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locorr Strategic Allocation vs. Matthews India Fund
Performance |
| Timeline |
| Locorr Strategic All |
| Matthews India |
Locorr Strategic and Matthews India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Strategic and Matthews India
The main advantage of trading using opposite Locorr Strategic and Matthews India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Strategic position performs unexpectedly, Matthews India 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 India will offset losses from the drop in Matthews India's long position.| Locorr Strategic vs. Gamco Global Gold | Locorr Strategic vs. First Eagle Gold | Locorr Strategic vs. Vy Goldman Sachs | Locorr Strategic vs. International Investors Gold |
| Matthews India vs. Matthews Japan Fund | Matthews India vs. Hartford International Equity | Matthews India vs. Qs Sp 500 | Matthews India vs. Columbia Emerging Markets |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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