Correlation Between MSCI ACWI and BOOKING
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By analyzing existing cross correlation between MSCI ACWI exAUCONSUMER and BOOKING HOLDINGS INC, you can compare the effects of market volatilities on MSCI ACWI and BOOKING 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 MSCI ACWI with a short position of BOOKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and BOOKING.
Diversification Opportunities for MSCI ACWI and BOOKING
Very good diversification
The 3 months correlation between MSCI and BOOKING is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and BOOKING HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOOKING HOLDINGS INC and MSCI ACWI 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 MSCI ACWI exAUCONSUMER are associated (or correlated) with BOOKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOOKING HOLDINGS INC has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and BOOKING go up and down completely randomly.
Pair Corralation between MSCI ACWI and BOOKING
Assuming the 90 days horizon MSCI ACWI exAUCONSUMER is expected to generate 0.54 times more return on investment than BOOKING. However, MSCI ACWI exAUCONSUMER is 1.86 times less risky than BOOKING. It trades about -0.15 of its potential returns per unit of risk. BOOKING HOLDINGS INC is currently generating about -0.24 per unit of risk. If you would invest 2,497 in MSCI ACWI exAUCONSUMER on September 26, 2024 and sell it today you would lose (23.00) from holding MSCI ACWI exAUCONSUMER or give up 0.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
MSCI ACWI exAUCONSUMER vs. BOOKING HOLDINGS INC
Performance |
Timeline |
MSCI ACWI exAUCONSUMER |
BOOKING HOLDINGS INC |
MSCI ACWI and BOOKING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MSCI ACWI and BOOKING
The main advantage of trading using opposite MSCI ACWI and BOOKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI position performs unexpectedly, BOOKING 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 BOOKING will offset losses from the drop in BOOKING's long position.MSCI ACWI vs. Harrow Health 8625 | MSCI ACWI vs. Babcock Wilcox Enterprises, | MSCI ACWI vs. Babcock Wilcox Enterprises | MSCI ACWI vs. TRINL |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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