Correlation Between Matthews Asia and Calvert Global

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

By analyzing existing cross correlation between Matthews Asia Dividend and Calvert Global Water, you can compare the effects of market volatilities on Matthews Asia and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Calvert Global.

Diversification Opportunities for Matthews Asia and Calvert Global

0.32

Correlation Coefficient

Matthews Asia  Calvert Global

Weak diversification

The 3 months correlation between Matthews and Calvert is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Dividend and Calvert Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Water 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 Dividend are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Water has no effect on the direction of Matthews Asia i.e., Matthews Asia and Calvert Global go up and down completely randomly.

Pair Corralation between Matthews Asia and Calvert Global

Assuming the 90 days horizon Matthews Asia Dividend is expected to generate 1.08 times more return on investment than Calvert Global. However, Matthews Asia is 1.08 times more volatile than Calvert Global Water. It trades about 0.12 of its potential returns per unit of risk. Calvert Global Water is currently generating about 0.0 per unit of risk. If you would invest  1,634  in Matthews Asia Dividend on August 13, 2025 and sell it today you would earn a total of  104.00  from holding Matthews Asia Dividend or generate 6.36% return on investment over 90 days.

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

Matthews Asia Dividend  vs.  Calvert Global Water

Matthews Asia Dividend

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Matthews Asia Dividend are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Matthews Asia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Global Water

Risk-Adjusted Performance

Weakest

Over the last 90 days Calvert Global Water has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Matthews Asia and Calvert Global

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

The idea behind Matthews Asia Dividend and Calvert Global Water 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 CEOs Directory module to screen CEOs from public companies around the world.