Correlation Between VinaCapital Vietnam and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both VinaCapital Vietnam and IShares MSCI 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 VinaCapital Vietnam and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VinaCapital Vietnam Opportunity and iShares MSCI Japan, you can compare the effects of market volatilities on VinaCapital Vietnam 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 VinaCapital Vietnam with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of VinaCapital Vietnam and IShares MSCI.
Diversification Opportunities for VinaCapital Vietnam and IShares MSCI
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between VinaCapital and IShares is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding VinaCapital Vietnam Opportunit and iShares MSCI Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Japan and VinaCapital Vietnam 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 VinaCapital Vietnam Opportunity 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 Japan has no effect on the direction of VinaCapital Vietnam i.e., VinaCapital Vietnam and IShares MSCI go up and down completely randomly.
Pair Corralation between VinaCapital Vietnam and IShares MSCI
Assuming the 90 days trading horizon VinaCapital Vietnam Opportunity is expected to under-perform the IShares MSCI. In addition to that, VinaCapital Vietnam is 1.34 times more volatile than iShares MSCI Japan. It trades about -0.06 of its total potential returns per unit of risk. iShares MSCI Japan is currently generating about 0.31 per unit of volatility. If you would invest 478.00 in iShares MSCI Japan on August 28, 2024 and sell it today you would earn a total of 22.00 from holding iShares MSCI Japan or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VinaCapital Vietnam Opportunit vs. iShares MSCI Japan
Performance |
| Timeline |
| VinaCapital Vietnam |
| iShares MSCI Japan |
VinaCapital Vietnam and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VinaCapital Vietnam and IShares MSCI
The main advantage of trading using opposite VinaCapital Vietnam and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VinaCapital Vietnam 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.| VinaCapital Vietnam vs. Edinburgh Worldwide Investment | VinaCapital Vietnam vs. BlackRock Latin American | VinaCapital Vietnam vs. iShares MSCI Japan | VinaCapital Vietnam vs. Amundi EUR High |
| IShares MSCI vs. iShares JP Morgan | IShares MSCI vs. iShares MSCI Europe | IShares MSCI vs. iShares Nasdaq Biotechnology | IShares MSCI vs. iShares Global Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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