Correlation Between MSCI ACWI and Gelteq Limited

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Can any of the company-specific risk be diversified away by investing in both MSCI ACWI and Gelteq Limited 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 Gelteq Limited 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 Gelteq Limited Ordinary, you can compare the effects of market volatilities on MSCI ACWI and Gelteq Limited 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 Gelteq Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and Gelteq Limited.

Diversification Opportunities for MSCI ACWI and Gelteq Limited

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between MSCI and Gelteq is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and Gelteq Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelteq Limited Ordinary 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 Gelteq Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelteq Limited Ordinary has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and Gelteq Limited go up and down completely randomly.

Pair Corralation between MSCI ACWI and Gelteq Limited

Assuming the 90 days horizon MSCI ACWI exAUCONSUMER is expected to generate 0.02 times more return on investment than Gelteq Limited. However, MSCI ACWI exAUCONSUMER is 50.26 times less risky than Gelteq Limited. It trades about 0.18 of its potential returns per unit of risk. Gelteq Limited Ordinary is currently generating about -0.18 per unit of risk. If you would invest  2,451  in MSCI ACWI exAUCONSUMER on August 31, 2024 and sell it today you would earn a total of  50.00  from holding MSCI ACWI exAUCONSUMER or generate 2.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy36.51%
ValuesDaily Returns

MSCI ACWI exAUCONSUMER  vs.  Gelteq Limited Ordinary

 Performance 
       Timeline  
MSCI ACWI exAUCONSUMER 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in MSCI ACWI exAUCONSUMER are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, MSCI ACWI is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Gelteq Limited Ordinary 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Gelteq Limited Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

MSCI ACWI and Gelteq Limited Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MSCI ACWI and Gelteq Limited

The main advantage of trading using opposite MSCI ACWI and Gelteq Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI position performs unexpectedly, Gelteq Limited 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 Gelteq Limited will offset losses from the drop in Gelteq Limited's long position.
The idea behind MSCI ACWI exAUCONSUMER and Gelteq Limited Ordinary 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.
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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