Correlation Between Aquagold International and IShares MSCI

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

By analyzing existing cross correlation between Aquagold International and iShares MSCI USA, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and IShares MSCI.

Diversification Opportunities for Aquagold International and IShares MSCI

0.0

Correlation Coefficient

Aquagold International  IShares MSCI

Pay attention - limited upside

The 3 months correlation between Aquagold and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA and Aquagold International 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 Aquagold International 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 USA has no effect on the direction of Aquagold International i.e., Aquagold International and IShares MSCI go up and down completely randomly.

Pair Corralation between Aquagold International and IShares MSCI

If you would invest  4,103  in iShares MSCI USA on September 4, 2024 and sell it today you would earn a total of  318.00  from holding iShares MSCI USA or generate 7.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Aquagold International  vs.  iShares MSCI USA

Aquagold International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aquagold International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Aquagold International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

iShares MSCI USA

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI USA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile primary indicators, IShares MSCI may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Aquagold International and IShares MSCI

The main advantage of trading using opposite Aquagold International and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.

The idea behind Aquagold International and iShares MSCI USA 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.