Correlation Between Matthews International and Tiptree

Can any of the company-specific risk be diversified away by investing in both Matthews International and Tiptree 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 International and Tiptree into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Matthews International and Tiptree, you can compare the effects of market volatilities on Matthews International and Tiptree 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 International with a short position of Tiptree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews International and Tiptree.

Diversification Opportunities for Matthews International and Tiptree

0.23

Correlation Coefficient

Matthews International  Tiptree

Modest diversification

The 3 months correlation between Matthews and Tiptree is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Matthews International and Tiptree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiptree and Matthews International 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 International are associated (or correlated) with Tiptree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiptree has no effect on the direction of Matthews International i.e., Matthews International and Tiptree go up and down completely randomly.

Pair Corralation between Matthews International and Tiptree

Given the investment horizon of 90 days Matthews International is expected to generate 0.72 times more return on investment than Tiptree. However, Matthews International is 1.39 times less risky than Tiptree. It trades about 0.02 of its potential returns per unit of risk. Tiptree is currently generating about -0.08 per unit of risk. If you would invest  2,366  in Matthews International on June 29, 2025 and sell it today you would earn a total of  40.00  from holding Matthews International or generate 1.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Matthews International  vs.  Tiptree

Matthews International

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Matthews International are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Matthews International is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Tiptree

Risk-Adjusted Performance

Weakest

Over the last 90 days Tiptree has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Matthews International and Tiptree

The main advantage of trading using opposite Matthews International and Tiptree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews International position performs unexpectedly, Tiptree 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 Tiptree will offset losses from the drop in Tiptree's long position.

The idea behind Matthews International and Tiptree pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.