Correlation Between Emerging Markets and Msif Global
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Msif Global 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 Emerging Markets and Msif Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Equity and Msif Global Opportunity, you can compare the effects of market volatilities on Emerging Markets and Msif Global 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 Emerging Markets with a short position of Msif Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Msif Global.
Diversification Opportunities for Emerging Markets and Msif Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Emerging and Msif is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Equity and Msif Global Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Msif Global Opportunity and Emerging Markets 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 Emerging Markets Equity are associated (or correlated) with Msif Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Msif Global Opportunity has no effect on the direction of Emerging Markets i.e., Emerging Markets and Msif Global go up and down completely randomly.
Pair Corralation between Emerging Markets and Msif Global
Assuming the 90 days horizon Emerging Markets Equity is expected to generate 0.85 times more return on investment than Msif Global. However, Emerging Markets Equity is 1.18 times less risky than Msif Global. It trades about -0.03 of its potential returns per unit of risk. Msif Global Opportunity is currently generating about -0.05 per unit of risk. If you would invest 1,377 in Emerging Markets Equity on December 1, 2024 and sell it today you would lose (10.00) from holding Emerging Markets Equity or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Emerging Markets Equity vs. Msif Global Opportunity
Performance |
| Timeline |
| Emerging Markets Equity |
| Msif Global Opportunity |
Emerging Markets and Msif Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Msif Global
The main advantage of trading using opposite Emerging Markets and Msif Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Msif Global 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 Msif Global will offset losses from the drop in Msif Global's long position.| Emerging Markets vs. World Energy Fund | Emerging Markets vs. Thrivent Natural Resources | Emerging Markets vs. Invesco Energy Fund | Emerging Markets vs. Alpsalerian Energy Infrastructure |
| Msif Global vs. Us Government Securities | Msif Global vs. Old Westbury Municipal | Msif Global vs. Federated Government Income | Msif Global vs. Lord Abbett Intermediate |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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