Correlation Between IShares MSCI and Amprius Technologies

Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Amprius Technologies 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 Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares MSCI Denmark and Amprius Technologies, you can compare the effects of market volatilities on IShares MSCI and Amprius Technologies 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 Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Amprius Technologies.

Diversification Opportunities for IShares MSCI and Amprius Technologies

-0.65

Correlation Coefficient

IShares MSCI  Amprius Technologies

Excellent diversification

The 3 months correlation between IShares and Amprius is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Denmark and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies 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 Denmark are associated (or correlated) with Amprius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amprius Technologies has no effect on the direction of IShares MSCI i.e., IShares MSCI and Amprius Technologies go up and down completely randomly.

Pair Corralation between IShares MSCI and Amprius Technologies

Given the investment horizon of 90 days iShares MSCI Denmark is expected to generate 0.23 times more return on investment than Amprius Technologies. However, iShares MSCI Denmark is 4.28 times less risky than Amprius Technologies. It trades about -0.15 of its potential returns per unit of risk. Amprius Technologies is currently generating about -0.45 per unit of risk. If you would invest  12,318  in iShares MSCI Denmark on January 26, 2024 and sell it today you would lose (385.00) from holding iShares MSCI Denmark or give up 3.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

iShares MSCI Denmark  vs.  Amprius Technologies

iShares MSCI Denmark

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Denmark are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, IShares MSCI is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Amprius Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amprius Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with IShares MSCI and Amprius Technologies

The main advantage of trading using opposite IShares MSCI and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Amprius Technologies 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 Amprius Technologies will offset losses from the drop in Amprius Technologies' long position.

The idea behind iShares MSCI Denmark and Amprius Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.