Correlation Between IQ Winslow and Matthews China
Can any of the company-specific risk be diversified away by investing in both IQ Winslow and Matthews China 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 IQ Winslow and Matthews China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IQ Winslow Large and Matthews China Discovery, you can compare the effects of market volatilities on IQ Winslow and Matthews China 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 IQ Winslow with a short position of Matthews China. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQ Winslow and Matthews China.
Diversification Opportunities for IQ Winslow and Matthews China
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IWLG and Matthews is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding IQ Winslow Large and Matthews China Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews China Discovery and IQ Winslow 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 IQ Winslow Large are associated (or correlated) with Matthews China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews China Discovery has no effect on the direction of IQ Winslow i.e., IQ Winslow and Matthews China go up and down completely randomly.
Pair Corralation between IQ Winslow and Matthews China
Given the investment horizon of 90 days IQ Winslow Large is expected to under-perform the Matthews China. But the etf apears to be less risky and, when comparing its historical volatility, IQ Winslow Large is 1.39 times less risky than Matthews China. The etf trades about -0.01 of its potential returns per unit of risk. The Matthews China Discovery is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,558 in Matthews China Discovery on December 2, 2024 and sell it today you would earn a total of 222.00 from holding Matthews China Discovery or generate 8.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IQ Winslow Large vs. Matthews China Discovery
Performance |
Timeline |
IQ Winslow Large |
Matthews China Discovery |
IQ Winslow and Matthews China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IQ Winslow and Matthews China
The main advantage of trading using opposite IQ Winslow and Matthews China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQ Winslow position performs unexpectedly, Matthews China 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 China will offset losses from the drop in Matthews China's long position.IQ Winslow vs. FT Vest Equity | IQ Winslow vs. Northern Lights | IQ Winslow vs. Dimensional International High | IQ Winslow vs. First Trust Exchange Traded |
Matthews China vs. JPMorgan Fundamental Data | Matthews China vs. Vanguard Mid Cap Index | Matthews China vs. SPDR SP 400 | Matthews China vs. SPDR SP 400 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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