Correlation Between IShares MSCI and PGAL
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and PGAL 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 IShares MSCI and PGAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Ireland and PGAL, you can compare the effects of market volatilities on IShares MSCI and PGAL 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 IShares MSCI with a short position of PGAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and PGAL.
Diversification Opportunities for IShares MSCI and PGAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and PGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Ireland and PGAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGAL and IShares 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 iShares MSCI Ireland are associated (or correlated) with PGAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGAL has no effect on the direction of IShares MSCI i.e., IShares MSCI and PGAL go up and down completely randomly.
Pair Corralation between IShares MSCI and PGAL
Given the investment horizon of 90 days IShares MSCI is expected to generate 1.59 times less return on investment than PGAL. In addition to that, IShares MSCI is 1.06 times more volatile than PGAL. It trades about 0.04 of its total potential returns per unit of risk. PGAL is currently generating about 0.07 per unit of volatility. If you would invest 1,000.00 in PGAL on November 5, 2024 and sell it today you would earn a total of 71.00 from holding PGAL or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.52% |
| Values | Daily Returns |
iShares MSCI Ireland vs. PGAL
Performance |
| Timeline |
| iShares MSCI Ireland |
| PGAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and PGAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and PGAL
The main advantage of trading using opposite IShares MSCI and PGAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, PGAL 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 PGAL will offset losses from the drop in PGAL's long position.| IShares MSCI vs. iShares MSCI New | IShares MSCI vs. iShares MSCI Finland | IShares MSCI vs. iShares MSCI Israel | IShares MSCI vs. iShares MSCI Poland |
| PGAL vs. iShares MSCI Ireland | PGAL vs. Global X MSCI | PGAL vs. iShares MSCI Finland | PGAL vs. Global X MSCI |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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