Correlation Between Matthews International and Smart Share
Can any of the company-specific risk be diversified away by investing in both Matthews International and Smart Share 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 International and Smart Share into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews International and Smart Share Global, you can compare the effects of market volatilities on Matthews International and Smart Share 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 International with a short position of Smart Share. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews International and Smart Share.
Diversification Opportunities for Matthews International and Smart Share
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Matthews and Smart is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Matthews International and Smart Share Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Share Global and Matthews International 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 International are associated (or correlated) with Smart Share. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Share Global has no effect on the direction of Matthews International i.e., Matthews International and Smart Share go up and down completely randomly.
Pair Corralation between Matthews International and Smart Share
Given the investment horizon of 90 days Matthews International is expected to generate 1.92 times less return on investment than Smart Share. In addition to that, Matthews International is 1.2 times more volatile than Smart Share Global. It trades about 0.1 of its total potential returns per unit of risk. Smart Share Global is currently generating about 0.23 per unit of volatility. If you would invest 118.00 in Smart Share Global on June 4, 2025 and sell it today you would earn a total of 14.00 from holding Smart Share Global or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews International vs. Smart Share Global
Performance |
| Timeline |
| Matthews International |
| Smart Share Global |
Matthews International and Smart Share Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews International and Smart Share
The main advantage of trading using opposite Matthews International and Smart Share positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews International position performs unexpectedly, Smart Share 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 Smart Share will offset losses from the drop in Smart Share's long position.| Matthews International vs. Brookfield Business Partners | Matthews International vs. Compass Diversified Holdings | Matthews International vs. Franklin Electric Co | Matthews International vs. Griffon |
| Smart Share vs. Frontdoor | Smart Share vs. Carriage Services | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash, |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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