Correlation Between Nanjing Panda and MSCI
Can any of the company-specific risk be diversified away by investing in both Nanjing Panda and 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 Nanjing Panda and MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanjing Panda Electronics and MSCI Inc, you can compare the effects of market volatilities on Nanjing Panda and 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 Nanjing Panda with a short position of MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Panda and MSCI.
Diversification Opportunities for Nanjing Panda and MSCI
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nanjing and MSCI is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Panda Electronics and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc and Nanjing Panda 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 Nanjing Panda Electronics are associated (or correlated) with MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Nanjing Panda i.e., Nanjing Panda and MSCI go up and down completely randomly.
Pair Corralation between Nanjing Panda and MSCI
If you would invest 56,320 in MSCI Inc on October 16, 2024 and sell it today you would earn a total of 460.00 from holding MSCI Inc or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Nanjing Panda Electronics vs. MSCI Inc
Performance |
| Timeline |
| Nanjing Panda Electronics |
| MSCI Inc |
Nanjing Panda and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Panda and MSCI
The main advantage of trading using opposite Nanjing Panda and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Panda position performs unexpectedly, 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 MSCI will offset losses from the drop in MSCI's long position.| Nanjing Panda vs. Virtus Investment Partners | Nanjing Panda vs. Zijin Mining Group | Nanjing Panda vs. FIRST SAVINGS FINL | Nanjing Panda vs. CHRYSALIS INVESTMENTS LTD |
| MSCI vs. Renesas Electronics | MSCI vs. Nanjing Panda Electronics | MSCI vs. TT Electronics PLC | MSCI vs. SWISS WATER DECAFFCOFFEE |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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