Correlation Between Matthews Asia and Wireless Portfolio
Can any of the company-specific risk be diversified away by investing in both Matthews Asia and Wireless Portfolio 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 Wireless Portfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Asia Innovators and Wireless Portfolio Wireless, you can compare the effects of market volatilities on Matthews Asia and Wireless Portfolio 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 Wireless Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Wireless Portfolio.
Diversification Opportunities for Matthews Asia and Wireless Portfolio
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Matthews and Wireless is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Innovators and Wireless Portfolio Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Portfolio 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 Innovators are associated (or correlated) with Wireless Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Portfolio has no effect on the direction of Matthews Asia i.e., Matthews Asia and Wireless Portfolio go up and down completely randomly.
Pair Corralation between Matthews Asia and Wireless Portfolio
Assuming the 90 days horizon Matthews Asia Innovators is expected to generate 1.24 times more return on investment than Wireless Portfolio. However, Matthews Asia is 1.24 times more volatile than Wireless Portfolio Wireless. It trades about -0.03 of its potential returns per unit of risk. Wireless Portfolio Wireless is currently generating about -0.06 per unit of risk. If you would invest 1,823 in Matthews Asia Innovators on October 7, 2025 and sell it today you would lose (53.00) from holding Matthews Asia Innovators or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews Asia Innovators vs. Wireless Portfolio Wireless
Performance |
| Timeline |
| Matthews Asia Innovators |
| Wireless Portfolio |
Matthews Asia and Wireless Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Asia and Wireless Portfolio
The main advantage of trading using opposite Matthews Asia and Wireless Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Asia position performs unexpectedly, Wireless Portfolio 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 Wireless Portfolio will offset losses from the drop in Wireless Portfolio's long position.| Matthews Asia vs. Payson Total Return | Matthews Asia vs. Hennessy Nerstone Value | Matthews Asia vs. Ab Select Equity | Matthews Asia vs. Cambiar Opportunity Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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