Correlation Between Gelsenwasser and MSCI
Can any of the company-specific risk be diversified away by investing in both Gelsenwasser and 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 Gelsenwasser and MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gelsenwasser AG and MSCI Inc, you can compare the effects of market volatilities on Gelsenwasser and 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 Gelsenwasser with a short position of MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelsenwasser and MSCI.
Diversification Opportunities for Gelsenwasser and MSCI
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gelsenwasser and MSCI is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gelsenwasser AG and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc and Gelsenwasser 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 Gelsenwasser AG are associated (or correlated) with MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Gelsenwasser i.e., Gelsenwasser and MSCI go up and down completely randomly.
Pair Corralation between Gelsenwasser and MSCI
Assuming the 90 days horizon Gelsenwasser AG is expected to under-perform the MSCI. In addition to that, Gelsenwasser is 1.65 times more volatile than MSCI Inc. It trades about -0.02 of its total potential returns per unit of risk. MSCI Inc is currently generating about 0.03 per unit of volatility. If you would invest 45,953 in MSCI Inc on August 30, 2024 and sell it today you would earn a total of 11,227 from holding MSCI Inc or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gelsenwasser AG vs. MSCI Inc
Performance |
| Timeline |
| Gelsenwasser AG |
| MSCI Inc |
Gelsenwasser and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gelsenwasser and MSCI
The main advantage of trading using opposite Gelsenwasser and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gelsenwasser position performs unexpectedly, 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 MSCI will offset losses from the drop in MSCI's long position.| Gelsenwasser vs. Guangdong Investment Limited | Gelsenwasser vs. TTW Public | Gelsenwasser vs. Superior Plus Corp | Gelsenwasser vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |