Correlation Between Matthews Asia and High-yield Municipal
Can any of the company-specific risk be diversified away by investing in both Matthews Asia and High-yield Municipal 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 Asia and High-yield Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Asia Dividend and High Yield Municipal Fund, you can compare the effects of market volatilities on Matthews Asia and High-yield Municipal 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 Asia with a short position of High-yield Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and High-yield Municipal.
Diversification Opportunities for Matthews Asia and High-yield Municipal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Matthews and High-yield is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Dividend and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and Matthews Asia 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 Asia Dividend are associated (or correlated) with High-yield Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of Matthews Asia i.e., Matthews Asia and High-yield Municipal go up and down completely randomly.
Pair Corralation between Matthews Asia and High-yield Municipal
Assuming the 90 days horizon Matthews Asia Dividend is expected to generate 3.8 times more return on investment than High-yield Municipal. However, Matthews Asia is 3.8 times more volatile than High Yield Municipal Fund. It trades about 0.16 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.42 per unit of risk. If you would invest 1,581 in Matthews Asia Dividend on July 26, 2025 and sell it today you would earn a total of 133.00 from holding Matthews Asia Dividend or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews Asia Dividend vs. High Yield Municipal Fund
Performance |
| Timeline |
| Matthews Asia Dividend |
| High Yield Municipal |
Matthews Asia and High-yield Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asia and High-yield Municipal
The main advantage of trading using opposite Matthews Asia and High-yield Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asia position performs unexpectedly, High-yield Municipal 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 High-yield Municipal will offset losses from the drop in High-yield Municipal's long position.| Matthews Asia vs. Matthews Asia Dividend | Matthews Asia vs. Integrity Dividend Harvest | Matthews Asia vs. High Yield Municipal Fund | Matthews Asia vs. Global Strategist Portfolio |
| High-yield Municipal vs. Pioneer Amt Free Municipal | High-yield Municipal vs. Western Asset Managed | High-yield Municipal vs. Matthews Asia Dividend | High-yield Municipal vs. Allianzgi Nfj Mid Cap |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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