Correlation Between Matthews China and Innovator Russell
Can any of the company-specific risk be diversified away by investing in both Matthews China and Innovator Russell 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 China and Innovator Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews China Discovery and Innovator Russell 2000, you can compare the effects of market volatilities on Matthews China and Innovator Russell 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 China with a short position of Innovator Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews China and Innovator Russell.
Diversification Opportunities for Matthews China and Innovator Russell
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Matthews and Innovator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Discovery and Innovator Russell 2000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Russell 2000 and Matthews China 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 China Discovery are associated (or correlated) with Innovator Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Russell 2000 has no effect on the direction of Matthews China i.e., Matthews China and Innovator Russell go up and down completely randomly.
Pair Corralation between Matthews China and Innovator Russell
If you would invest 2,622 in Matthews China Discovery on April 4, 2025 and sell it today you would earn a total of 276.00 from holding Matthews China Discovery or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
Matthews China Discovery vs. Innovator Russell 2000
Performance |
| Timeline |
| Matthews China Discovery |
| Innovator Russell 2000 |
Risk-Adjusted Performance
Solid
Weak | Strong |
Matthews China and Innovator Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews China and Innovator Russell
The main advantage of trading using opposite Matthews China and Innovator Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews China position performs unexpectedly, Innovator Russell 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 Innovator Russell will offset losses from the drop in Innovator Russell's long position.| Matthews China vs. Matthews Emerging Markets | Matthews China vs. Morgan Stanley Pathway | Matthews China vs. Neuberger Berman ETF | Matthews China vs. Harbor ETF Trust |
| Innovator Russell vs. FT Vest Equity | Innovator Russell vs. Northern Lights | Innovator Russell vs. Dimensional International High | Innovator Russell vs. JPMorgan Fundamental Data |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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