Correlation Between Intel and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Intel and IShares MSCI 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 Intel and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and iShares MSCI India, you can compare the effects of market volatilities on Intel and IShares MSCI 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 Intel with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and IShares MSCI.
Diversification Opportunities for Intel and IShares MSCI
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and IShares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel and iShares MSCI India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI India and Intel 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 Intel are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI India has no effect on the direction of Intel i.e., Intel and IShares MSCI go up and down completely randomly.
Pair Corralation between Intel and IShares MSCI
Given the investment horizon of 90 days Intel is expected to generate 2.8 times less return on investment than IShares MSCI. In addition to that, Intel is 3.51 times more volatile than iShares MSCI India. It trades about 0.01 of its total potential returns per unit of risk. iShares MSCI India is currently generating about 0.06 per unit of volatility. If you would invest 4,306 in iShares MSCI India on August 27, 2024 and sell it today you would earn a total of 1,117 from holding iShares MSCI India or generate 25.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. iShares MSCI India
Performance |
| Timeline |
| Intel |
| iShares MSCI India |
Intel and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and IShares MSCI
The main advantage of trading using opposite Intel and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.The idea behind Intel and iShares MSCI India pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IShares MSCI vs. iShares India 50 | IShares MSCI vs. iShares MSCI China | IShares MSCI vs. VanEck Vietnam ETF | IShares MSCI vs. WisdomTree India Earnings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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