Correlation Between IShares MSCI and Mast Global
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Mast Global 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 Mast Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Frontier and Mast Global Battery, you can compare the effects of market volatilities on IShares MSCI and Mast Global 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 Mast Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Mast Global.
Diversification Opportunities for IShares MSCI and Mast Global
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Mast is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Frontier and Mast Global Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mast Global Battery 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 Frontier are associated (or correlated) with Mast Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mast Global Battery has no effect on the direction of IShares MSCI i.e., IShares MSCI and Mast Global go up and down completely randomly.
Pair Corralation between IShares MSCI and Mast Global
Allowing for the 90-day total investment horizon IShares MSCI is expected to generate 48.22 times less return on investment than Mast Global. But when comparing it to its historical volatility, iShares MSCI Frontier is 9.01 times less risky than Mast Global. It trades about 0.02 of its potential returns per unit of risk. Mast Global Battery is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,277 in Mast Global Battery on September 3, 2024 and sell it today you would earn a total of 243.00 from holding Mast Global Battery or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Frontier vs. Mast Global Battery
Performance |
| Timeline |
| iShares MSCI Frontier |
| Mast Global Battery |
IShares MSCI and Mast Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Mast Global
The main advantage of trading using opposite IShares MSCI and Mast Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Mast Global 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 Mast Global will offset losses from the drop in Mast Global's long position.| IShares MSCI vs. iShares MSCI Poland | IShares MSCI vs. iShares MSCI Emerging | IShares MSCI vs. iShares MSCI Philippines | IShares MSCI vs. iShares MSCI Indonesia |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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