Correlation Between IShares MSCI and PHN Multi
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By analyzing existing cross correlation between iShares MSCI Min and PHN Multi Style All Cap, you can compare the effects of market volatilities on IShares MSCI and PHN Multi 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 IShares MSCI with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and PHN Multi.
Diversification Opportunities for IShares MSCI and PHN Multi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and PHN is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Min and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style and IShares 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 iShares MSCI Min are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of IShares MSCI i.e., IShares MSCI and PHN Multi go up and down completely randomly.
Pair Corralation between IShares MSCI and PHN Multi
Assuming the 90 days trading horizon iShares MSCI Min is expected to generate 0.73 times more return on investment than PHN Multi. However, iShares MSCI Min is 1.37 times less risky than PHN Multi. It trades about 0.18 of its potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.13 per unit of risk. If you would invest 7,328 in iShares MSCI Min on August 25, 2024 and sell it today you would earn a total of 1,430 from holding iShares MSCI Min or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
iShares MSCI Min vs. PHN Multi Style All Cap
Performance |
| Timeline |
| iShares MSCI Min |
| PHN Multi Style |
IShares MSCI and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and PHN Multi
The main advantage of trading using opposite IShares MSCI and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, PHN Multi 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 PHN Multi will offset losses from the drop in PHN Multi's long position.| IShares MSCI vs. BMO SP 500 | IShares MSCI vs. Global X SP | IShares MSCI vs. BMO SP 500 | IShares MSCI vs. Vanguard SP 500 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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