Correlation Between SPDR MSCI and OneAscent International
Can any of the company-specific risk be diversified away by investing in both SPDR MSCI and OneAscent International 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 SPDR MSCI and OneAscent International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR MSCI Emerging and OneAscent International Equity, you can compare the effects of market volatilities on SPDR MSCI and OneAscent International 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 SPDR MSCI with a short position of OneAscent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR MSCI and OneAscent International.
Diversification Opportunities for SPDR MSCI and OneAscent International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and OneAscent is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MSCI Emerging and OneAscent International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent International and SPDR MSCI 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 SPDR MSCI Emerging are associated (or correlated) with OneAscent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent International has no effect on the direction of SPDR MSCI i.e., SPDR MSCI and OneAscent International go up and down completely randomly.
Pair Corralation between SPDR MSCI and OneAscent International
Given the investment horizon of 90 days SPDR MSCI Emerging is expected to under-perform the OneAscent International. In addition to that, SPDR MSCI is 1.42 times more volatile than OneAscent International Equity. It trades about -0.11 of its total potential returns per unit of risk. OneAscent International Equity is currently generating about 0.03 per unit of volatility. If you would invest 3,314 in OneAscent International Equity on September 1, 2024 and sell it today you would earn a total of 12.00 from holding OneAscent International Equity or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR MSCI Emerging vs. OneAscent International Equity
Performance |
| Timeline |
| SPDR MSCI Emerging |
| OneAscent International |
SPDR MSCI and OneAscent International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR MSCI and OneAscent International
The main advantage of trading using opposite SPDR MSCI and OneAscent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR MSCI position performs unexpectedly, OneAscent International 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 OneAscent International will offset losses from the drop in OneAscent International's long position.| SPDR MSCI vs. SPDR MSCI Emerging | SPDR MSCI vs. SPDR MSCI EAFE | SPDR MSCI vs. SPDR DoubleLine Emerging | SPDR MSCI vs. SPDR MSCI EAFE |
| OneAscent International vs. iShares ESG Aggregate | OneAscent International vs. SPDR MSCI Emerging | OneAscent International vs. Aquagold International | OneAscent International vs. Thrivent High Yield |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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