Correlation Between Satrix MSCI and Satrix Swix
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By analyzing existing cross correlation between Satrix MSCI World and Satrix Swix Top, you can compare the effects of market volatilities on Satrix MSCI and Satrix Swix 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 Satrix MSCI with a short position of Satrix Swix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satrix MSCI and Satrix Swix.
Diversification Opportunities for Satrix MSCI and Satrix Swix
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Satrix and Satrix is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Satrix MSCI World and Satrix Swix Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satrix Swix Top and Satrix MSCI 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 Satrix MSCI World are associated (or correlated) with Satrix Swix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satrix Swix Top has no effect on the direction of Satrix MSCI i.e., Satrix MSCI and Satrix Swix go up and down completely randomly.
Pair Corralation between Satrix MSCI and Satrix Swix
Assuming the 90 days trading horizon Satrix MSCI World is expected to generate 0.99 times more return on investment than Satrix Swix. However, Satrix MSCI World is 1.01 times less risky than Satrix Swix. It trades about 0.08 of its potential returns per unit of risk. Satrix Swix Top is currently generating about 0.02 per unit of risk. If you would invest 715,500 in Satrix MSCI World on November 7, 2024 and sell it today you would earn a total of 316,600 from holding Satrix MSCI World or generate 44.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satrix MSCI World vs. Satrix Swix Top
Performance |
| Timeline |
| Satrix MSCI World |
| Satrix Swix Top |
Satrix MSCI and Satrix Swix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satrix MSCI and Satrix Swix
The main advantage of trading using opposite Satrix MSCI and Satrix Swix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satrix MSCI position performs unexpectedly, Satrix Swix 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 Satrix Swix will offset losses from the drop in Satrix Swix's long position.| Satrix MSCI vs. Satrix Swix Top | Satrix MSCI vs. Satrix 40 ETF | Satrix MSCI vs. Satrix MSCI EM | Satrix MSCI vs. Satrix Resi ETF |
| Satrix Swix vs. Satrix MSCI World | Satrix Swix vs. Satrix 40 ETF | Satrix Swix vs. Satrix MSCI EM | Satrix Swix vs. Satrix Resi ETF |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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