Correlation Between MSCI ACWI and FG Annuities
Can any of the company-specific risk be diversified away by investing in both MSCI ACWI and FG Annuities 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 FG Annuities 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 FG Annuities Life, you can compare the effects of market volatilities on MSCI ACWI and FG Annuities 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 FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and FG Annuities.
Diversification Opportunities for MSCI ACWI and FG Annuities
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MSCI and FG Annuities is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life 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 FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and FG Annuities go up and down completely randomly.
Pair Corralation between MSCI ACWI and FG Annuities
Assuming the 90 days horizon MSCI ACWI is expected to generate 7.7 times less return on investment than FG Annuities. But when comparing it to its historical volatility, MSCI ACWI exAUCONSUMER is 17.11 times less risky than FG Annuities. It trades about 0.16 of its potential returns per unit of risk. FG Annuities Life is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,472 in FG Annuities Life on August 30, 2024 and sell it today you would earn a total of 380.00 from holding FG Annuities Life or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSCI ACWI exAUCONSUMER vs. FG Annuities Life
Performance |
| Timeline |
| MSCI ACWI exAUCONSUMER |
| FG Annuities Life |
MSCI ACWI and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSCI ACWI and FG Annuities
The main advantage of trading using opposite MSCI ACWI and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' 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 |
| FG Annuities vs. CNO Financial Group | FG Annuities vs. MetLife Preferred Stock | FG Annuities vs. Prudential Public Limited | FG Annuities vs. Brighthouse Financial |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |