Correlation Between Pinnacle Sherman and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Pinnacle Sherman 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 Pinnacle Sherman and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinnacle Sherman Multi Strategy and iShares MSCI USA, you can compare the effects of market volatilities on Pinnacle Sherman 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 Pinnacle Sherman with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinnacle Sherman and IShares MSCI.
Diversification Opportunities for Pinnacle Sherman and IShares MSCI
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pinnacle and IShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Sherman Multi Strateg and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA and Pinnacle Sherman 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 Pinnacle Sherman Multi Strategy 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 USA has no effect on the direction of Pinnacle Sherman i.e., Pinnacle Sherman and IShares MSCI go up and down completely randomly.
Pair Corralation between Pinnacle Sherman and IShares MSCI
Assuming the 90 days horizon Pinnacle Sherman Multi Strategy is expected to under-perform the IShares MSCI. In addition to that, Pinnacle Sherman is 1.64 times more volatile than iShares MSCI USA. It trades about -0.05 of its total potential returns per unit of risk. iShares MSCI USA is currently generating about -0.02 per unit of volatility. If you would invest 18,255 in iShares MSCI USA on November 27, 2024 and sell it today you would lose (53.00) from holding iShares MSCI USA or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinnacle Sherman Multi Strateg vs. iShares MSCI USA
Performance |
| Timeline |
| Pinnacle Sherman Multi |
| iShares MSCI USA |
Pinnacle Sherman and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinnacle Sherman and IShares MSCI
The main advantage of trading using opposite Pinnacle Sherman and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinnacle Sherman 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.| Pinnacle Sherman vs. Global Gold Fund | Pinnacle Sherman vs. Invesco Gold Special | Pinnacle Sherman vs. Wells Fargo Advantage | Pinnacle Sherman vs. Fidelity Advisor Gold |
| IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. Invesco SP 500 |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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