Correlation Between MSCI ACWI and Expeditors International
Can any of the company-specific risk be diversified away by investing in both MSCI ACWI and Expeditors International 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 MSCI ACWI and Expeditors International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSCI ACWI exAUCONSUMER and Expeditors International of, you can compare the effects of market volatilities on MSCI ACWI and Expeditors International 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 MSCI ACWI with a short position of Expeditors International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and Expeditors International.
Diversification Opportunities for MSCI ACWI and Expeditors International
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MSCI and Expeditors is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and Expeditors International of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expeditors International and MSCI ACWI 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 MSCI ACWI exAUCONSUMER are associated (or correlated) with Expeditors International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expeditors International has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and Expeditors International go up and down completely randomly.
Pair Corralation between MSCI ACWI and Expeditors International
Assuming the 90 days horizon MSCI ACWI is expected to generate 1.07 times less return on investment than Expeditors International. But when comparing it to its historical volatility, MSCI ACWI exAUCONSUMER is 2.84 times less risky than Expeditors International. It trades about 0.07 of its potential returns per unit of risk. Expeditors International of is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,600 in Expeditors International of on August 30, 2024 and sell it today you would earn a total of 1,525 from holding Expeditors International of or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSCI ACWI exAUCONSUMER vs. Expeditors International of
Performance |
| Timeline |
| MSCI ACWI exAUCONSUMER |
| Expeditors International |
MSCI ACWI and Expeditors International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSCI ACWI and Expeditors International
The main advantage of trading using opposite MSCI ACWI and Expeditors International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI position performs unexpectedly, Expeditors International 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 Expeditors International will offset losses from the drop in Expeditors International's long position.| MSCI ACWI vs. Brightsphere Investment Group | MSCI ACWI vs. Franklin Templeton Limited | MSCI ACWI vs. Blackrock Muni Intermediate | MSCI ACWI vs. Munivest Fund |
| Expeditors International vs. Landstar System | Expeditors International vs. JB Hunt Transport | Expeditors International vs. Hub Group | Expeditors International vs. Forward Air |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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