Correlation Between IShares MSCI and AGFiQ Market
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and AGFiQ Market 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 AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Canada and AGFiQ Market Neutral, you can compare the effects of market volatilities on IShares MSCI and AGFiQ Market 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 AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and AGFiQ Market.
Diversification Opportunities for IShares MSCI and AGFiQ Market
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and AGFiQ is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Canada and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral 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 Canada are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of IShares MSCI i.e., IShares MSCI and AGFiQ Market go up and down completely randomly.
Pair Corralation between IShares MSCI and AGFiQ Market
Considering the 90-day investment horizon iShares MSCI Canada is expected to generate 1.0 times more return on investment than AGFiQ Market. However, iShares MSCI Canada is 1.0 times less risky than AGFiQ Market. It trades about 0.19 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about -0.2 per unit of risk. If you would invest 4,152 in iShares MSCI Canada on August 24, 2024 and sell it today you would earn a total of 142.00 from holding iShares MSCI Canada or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Canada vs. AGFiQ Market Neutral
Performance |
| Timeline |
| iShares MSCI Canada |
| AGFiQ Market Neutral |
IShares MSCI and AGFiQ Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and AGFiQ Market
The main advantage of trading using opposite IShares MSCI and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market's long position.| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. HUMANA INC | IShares MSCI vs. SCOR PK |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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