Correlation Between Matthews Pacific and Barclays ETN

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

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

Diversification Opportunities for Matthews Pacific and Barclays ETN

0.51

Correlation Coefficient

Matthews Pacific  Barclays ETN

Very weak diversification

The 3 months correlation between Matthews and Barclays is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Pacific Tiger and Barclays ETN Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN Select and Matthews Pacific 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 Pacific Tiger are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN Select has no effect on the direction of Matthews Pacific i.e., Matthews Pacific and Barclays ETN go up and down completely randomly.

Pair Corralation between Matthews Pacific and Barclays ETN

Assuming the 90 days horizon Matthews Pacific Tiger is expected to generate 0.74 times more return on investment than Barclays ETN. However, Matthews Pacific Tiger is 1.36 times less risky than Barclays ETN. It trades about 0.17 of its potential returns per unit of risk. Barclays ETN Select is currently generating about 0.09 per unit of risk. If you would invest  1,941  in Matthews Pacific Tiger on May 5, 2025 and sell it today you would earn a total of  44.00  from holding Matthews Pacific Tiger or generate 2.27% return on investment over 90 days.

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

Matthews Pacific Tiger  vs.  Barclays ETN Select

Matthews Pacific Tiger

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Matthews Pacific Tiger are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Matthews Pacific may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Barclays ETN Select

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Barclays ETN Select are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable primary indicators, Barclays ETN is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Matthews Pacific and Barclays ETN

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

The idea behind Matthews Pacific Tiger and Barclays ETN Select 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.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..