Matthews China Correlations

MCSMX Fund

USD 9.99 0.02 0.20%

The current 90-days correlation between Matthews China Small and Matthews China Dividend is 0.89 (i.e., Very poor diversification). The correlation of Matthews China is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Matthews China Correlation With Market

Good diversification

The correlation between Matthews China Small and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Matthews China Small and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Matthews China Small. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with Matthews Mutual Fund

0.64	MPACX	Matthews Asia Growth	Pair Corr
0.79	MAPTX	Matthews Pacific Tiger Potential Growth	Pair Corr
0.88	MAPIX	Matthews Asia Dividend	Pair Corr
0.75	MASGX	Matthews Asia Esg	Pair Corr
0.74	MATFX	Matthews Asia Innovators	Pair Corr
0.98	MCDFX	Matthews China Dividend	Pair Corr
0.98	MCHFX	Matthews China	Pair Corr
0.83	MEGMX	Matthews Emerging Markets	Pair Corr
0.64	MIAPX	Matthews Asia Growth	Pair Corr
0.98	MICDX	Matthews China Dividend	Pair Corr
1.0	MICHX	Matthews China Small	Pair Corr
0.93	MICFX	Matthews China	Pair Corr
0.83	MIEFX	Matthews Emerging Markets	Pair Corr
0.88	MIPIX	Matthews Asia Dividend	Pair Corr
0.79	MIPTX	Matthews Pacific Tiger Potential Growth	Pair Corr
0.74	MITEX	Matthews Asia Innovators	Pair Corr
0.75	MISFX	Matthews Asia Esg	Pair Corr
0.9	FHKTX	Fidelity China Region	Pair Corr
0.89	FCHKX	Fidelity China Region	Pair Corr
0.94	FHKAX	Fidelity China Region	Pair Corr
0.94	FHKIX	Fidelity China Region	Pair Corr
0.95	FIQFX	Fidelity China Region	Pair Corr
0.9	FHKCX	Fidelity China Region	Pair Corr

Moving against Matthews Mutual Fund

0.74	MIDNX	Matthews India Steady Growth	Pair Corr
0.74	MINDX	Matthews India Steady Growth	Pair Corr
0.57	VITSX	Vanguard Total Stock	Pair Corr
0.54	VFINX	Vanguard 500 Index	Pair Corr
0.53	VTSAX	Vanguard Total Stock	Pair Corr
0.53	VFIAX	Vanguard 500 Index	Pair Corr
0.53	VTSMX	Vanguard Total Stock	Pair Corr
0.53	VSMPX	Vanguard Total Stock	Pair Corr
0.53	VSTSX	Vanguard Total Stock	Pair Corr
0.5	VFFSX	Vanguard 500 Index	Pair Corr

Related Correlations Analysis

	MCDFX	MATFX	MSMLX	MCHFX	BGAFX
MCDFX		0.78	0.61	0.99	-0.46	MCDFX
MATFX	0.78		0.73	0.8	-0.02	MATFX
MSMLX	0.61	0.73		0.58	-0.09	MSMLX
MCHFX	0.99	0.8	0.58		-0.36	MCHFX
BGAFX	-0.46	-0.02	-0.09	-0.36		BGAFX
	MCDFX	MATFX	MSMLX	MCHFX	BGAFX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MCHFX	+ 0.99	MCDFX
MCHFX	+ 0.8	MATFX
MATFX	+ 0.78	MCDFX
MSMLX	+ 0.73	MATFX
MSMLX	+ 0.61	MCDFX
MCHFX	+ 0.58	MSMLX

High negative correlations

BGAFX	- 0.46	MCDFX
BGAFX	- 0.36	MCHFX
BGAFX	- 0.09	MSMLX
BGAFX	- 0.02	MATFX

Risk-Adjusted Indicators

There is a big difference between Matthews Mutual Fund performing well and Matthews China Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Matthews China's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
MCDFX	1.05	0.16	0.17	(1.35)	1.01	(1.32)	2.44	(2.11)	6.56
MATFX	1.06	0.04	0.04	0.06	1.39	(1.07)	1.96	(2.33)	7.52
MSMLX	0.78	(0.03)	0.00	0.24	0.00	0.00	1.44	(1.38)	5.05
MCHFX	1.25	0.16	0.13	(1.08)	1.29	(1.58)	2.70	(2.85)	6.92
BGAFX	1.24	(0.09)	0.00	0.66	0.00	0.00	2.12	(3.04)	8.92

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