Correlation Between IShares MSCI and Victory Supermarket
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Victory Supermarket 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 IShares MSCI and Victory Supermarket into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Singapore and Victory Supermarket Chain, you can compare the effects of market volatilities on IShares MSCI and Victory Supermarket 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 Victory Supermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Victory Supermarket.
Diversification Opportunities for IShares MSCI and Victory Supermarket
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Victory is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Singapore and Victory Supermarket Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Supermarket Chain 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 Singapore are associated (or correlated) with Victory Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Supermarket Chain has no effect on the direction of IShares MSCI i.e., IShares MSCI and Victory Supermarket go up and down completely randomly.
Pair Corralation between IShares MSCI and Victory Supermarket
Considering the 90-day investment horizon IShares MSCI is expected to generate 1.54 times less return on investment than Victory Supermarket. But when comparing it to its historical volatility, iShares MSCI Singapore is 1.95 times less risky than Victory Supermarket. It trades about 0.01 of its potential returns per unit of risk. Victory Supermarket Chain is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 488,207 in Victory Supermarket Chain on January 17, 2024 and sell it today you would lose (11,407) from holding Victory Supermarket Chain or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.83% |
| Values | Daily Returns |
iShares MSCI Singapore vs. Victory Supermarket Chain
Performance |
| Timeline |
| iShares MSCI Singapore |
| Victory Supermarket Chain |
IShares MSCI and Victory Supermarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Victory Supermarket
The main advantage of trading using opposite IShares MSCI and Victory Supermarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Victory Supermarket 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 Victory Supermarket will offset losses from the drop in Victory Supermarket's long position.| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Taiwan |
| Victory Supermarket vs. Shufersal | Victory Supermarket vs. Rami Levi | Victory Supermarket vs. Tiv Taam | Victory Supermarket vs. M Yochananof and |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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