Correlation Between LG Cyber and IShares MSCI

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

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

Diversification Opportunities for LG Cyber and IShares MSCI

-0.9

Correlation Coefficient

LG Cyber  IShares MSCI

Pay attention - limited upside

The 3 months correlation between ISPY and IShares is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding LG Cyber Security and iShares MSCI Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Brazil and LG Cyber 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 LG Cyber Security 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 Brazil has no effect on the direction of LG Cyber i.e., LG Cyber and IShares MSCI go up and down completely randomly.

Pair Corralation between LG Cyber and IShares MSCI

Assuming the 90 days trading horizon LG Cyber Security is expected to generate 0.98 times more return on investment than IShares MSCI. However, LG Cyber Security is 1.02 times less risky than IShares MSCI. It trades about 0.07 of its potential returns per unit of risk. iShares MSCI Brazil is currently generating about -0.01 per unit of risk. If you would invest  1,645  in LG Cyber Security on October 9, 2024 and sell it today you would earn a total of  982.00  from holding LG Cyber Security or generate 59.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	97.36%
Values	Daily Returns

LG Cyber Security  vs.  iShares MSCI Brazil

LG Cyber Security

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days LG Cyber Security has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, LG Cyber showed solid returns over the last few months and may actually be approaching a breakup point.

iShares MSCI Brazil

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares MSCI Brazil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Etf's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

Pair Trading with LG Cyber and IShares MSCI

The main advantage of trading using opposite LG Cyber and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Cyber 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 LG Cyber Security and iShares MSCI Brazil 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.