Correlation Between USWE SPORTS and MSCI
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and MSCI 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 USWE SPORTS and MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and MSCI Inc, you can compare the effects of market volatilities on USWE SPORTS and MSCI 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 USWE SPORTS with a short position of MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and MSCI.
Diversification Opportunities for USWE SPORTS and MSCI
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USWE and MSCI is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and MSCI go up and down completely randomly.
Pair Corralation between USWE SPORTS and MSCI
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the MSCI. In addition to that, USWE SPORTS is 1.89 times more volatile than MSCI Inc. It trades about -0.05 of its total potential returns per unit of risk. MSCI Inc is currently generating about 0.03 per unit of volatility. If you would invest 51,708 in MSCI Inc on August 25, 2024 and sell it today you would earn a total of 4,532 from holding MSCI Inc or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. MSCI Inc
Performance |
| Timeline |
| USWE SPORTS AB |
| MSCI Inc |
USWE SPORTS and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and MSCI
The main advantage of trading using opposite USWE SPORTS and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, MSCI 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 MSCI will offset losses from the drop in MSCI's long position.| USWE SPORTS vs. ANTA Sports Products | USWE SPORTS vs. Trip Group Limited | USWE SPORTS vs. Expedia Group | USWE SPORTS vs. Shimano |
| MSCI vs. USWE SPORTS AB | MSCI vs. NTG Nordic Transport | MSCI vs. Salesforce | MSCI vs. TITANIUM TRANSPORTGROUP |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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