Correlation Between SBF 120 and IShares MSCI
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By analyzing existing cross correlation between SBF 120 and iShares MSCI USA, you can compare the effects of market volatilities on SBF 120 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 SBF 120 with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and IShares MSCI.
Diversification Opportunities for SBF 120 and IShares MSCI
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SBF and IShares is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 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 SBF 120 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 SBF 120 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 SBF 120 i.e., SBF 120 and IShares MSCI go up and down completely randomly.
Pair Corralation between SBF 120 and IShares MSCI
Assuming the 90 days trading horizon SBF 120 is expected to generate 1.26 times less return on investment than IShares MSCI. In addition to that, SBF 120 is 1.0 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 0.07 per unit of volatility. If you would invest 766.00 in iShares MSCI USA on September 22, 2024 and sell it today you would earn a total of 7.00 from holding iShares MSCI USA or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBF 120 vs. iShares MSCI USA
Performance |
| Timeline |
SBF 120 and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
iShares MSCI USA
Pair trading matchups for IShares MSCI
Pair Trading with SBF 120 and IShares MSCI
The main advantage of trading using opposite SBF 120 and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 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.| SBF 120 vs. Gaztransport Technigaz SAS | SBF 120 vs. Bilendi | SBF 120 vs. Mediantechn | SBF 120 vs. Fiducial Office Solutions |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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