Correlation Between IShares MSCI and Camden National
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Camden National 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 Camden National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Germany and Camden National, you can compare the effects of market volatilities on IShares MSCI and Camden National 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 Camden National. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Camden National.
Diversification Opportunities for IShares MSCI and Camden National
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Camden is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Germany and Camden National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden National 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 Germany are associated (or correlated) with Camden National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden National has no effect on the direction of IShares MSCI i.e., IShares MSCI and Camden National go up and down completely randomly.
Pair Corralation between IShares MSCI and Camden National
Considering the 90-day investment horizon IShares MSCI is expected to generate 1.11 times less return on investment than Camden National. But when comparing it to its historical volatility, iShares MSCI Germany is 2.21 times less risky than Camden National. It trades about 0.06 of its potential returns per unit of risk. Camden National is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,814 in Camden National on August 30, 2024 and sell it today you would earn a total of 944.00 from holding Camden National or generate 24.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
iShares MSCI Germany vs. Camden National
Performance |
| Timeline |
| iShares MSCI Germany |
| Camden National |
IShares MSCI and Camden National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Camden National
The main advantage of trading using opposite IShares MSCI and Camden National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Camden National 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 Camden National will offset losses from the drop in Camden National's long position.| IShares MSCI vs. iShares MSCI United | IShares MSCI vs. iShares MSCI France | IShares MSCI vs. iShares MSCI Spain | IShares MSCI vs. iShares MSCI Italy |
| Camden National vs. First United | Camden National vs. First Community | Camden National vs. Greene County Bancorp | Camden National vs. Community West Bancshares |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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