Correlation Between Matthews Asia and Sit Dividend

Can any of the company-specific risk be diversified away by investing in both Matthews Asia and Sit Dividend 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 Sit Dividend 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 Sit Dividend Growth, you can compare the effects of market volatilities on Matthews Asia and Sit Dividend 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 Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Asia and Sit Dividend.

Diversification Opportunities for Matthews Asia and Sit Dividend

0.85

Correlation Coefficient

Matthews Asia  Sit Dividend

Very poor diversification

The 3 months correlation between Matthews and Sit is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Asia Dividend and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth 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 Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Matthews Asia i.e., Matthews Asia and Sit Dividend go up and down completely randomly.

Pair Corralation between Matthews Asia and Sit Dividend

Assuming the 90 days horizon Matthews Asia is expected to generate 1.2 times less return on investment than Sit Dividend. In addition to that, Matthews Asia is 1.08 times more volatile than Sit Dividend Growth. It trades about 0.2 of its total potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.25 per unit of volatility. If you would invest  1,566  in Sit Dividend Growth on May 14, 2025 and sell it today you would earn a total of  154.00  from holding Sit Dividend Growth or generate 9.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Matthews Asia Dividend  vs.  Sit Dividend Growth

Matthews Asia Dividend

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Matthews Asia Dividend are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Matthews Asia may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Sit Dividend Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sit Dividend Growth are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Sit Dividend may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Matthews Asia and Sit Dividend

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

The idea behind Matthews Asia Dividend and Sit Dividend Growth 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.