Correlation Between Wasatch Global and Matthews Asia
Can any of the company-specific risk be diversified away by investing in both Wasatch Global and Matthews Asia 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 Wasatch Global and Matthews Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Global Opportunities and Matthews Asia Esg, you can compare the effects of market volatilities on Wasatch Global and Matthews Asia 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 Wasatch Global with a short position of Matthews Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Global and Matthews Asia.
Diversification Opportunities for Wasatch Global and Matthews Asia
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wasatch and Matthews is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Global Opportunities and Matthews Asia Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asia Esg and Wasatch Global 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 Wasatch Global Opportunities are associated (or correlated) with Matthews Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asia Esg has no effect on the direction of Wasatch Global i.e., Wasatch Global and Matthews Asia go up and down completely randomly.
Pair Corralation between Wasatch Global and Matthews Asia
Assuming the 90 days horizon Wasatch Global Opportunities is expected to under-perform the Matthews Asia. But the mutual fund apears to be less risky and, when comparing its historical volatility, Wasatch Global Opportunities is 1.29 times less risky than Matthews Asia. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Matthews Asia Esg is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,333 in Matthews Asia Esg on August 14, 2025 and sell it today you would earn a total of 164.00 from holding Matthews Asia Esg or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Global Opportunities vs. Matthews Asia Esg
Performance |
| Timeline |
| Wasatch Global Oppor |
| Matthews Asia Esg |
Wasatch Global and Matthews Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Global and Matthews Asia
The main advantage of trading using opposite Wasatch Global and Matthews Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Global position performs unexpectedly, Matthews Asia 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 Asia will offset losses from the drop in Matthews Asia's long position.| Wasatch Global vs. Wasatch Emerging Markets | Wasatch Global vs. T Rowe Price | Wasatch Global vs. Amg Yacktman Focused | Wasatch Global vs. Voya Global Advantage |
| Matthews Asia vs. Matthews Asia Growth | Matthews Asia vs. Parametric Emerging Markets | Matthews Asia vs. Amg Managers Skyline | Matthews Asia vs. Wasatch 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |