Correlation Between MSCI ACWI and Sirius
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By analyzing existing cross correlation between MSCI ACWI exAUCONSUMER and Sirius XM Holdings, you can compare the effects of market volatilities on MSCI ACWI and Sirius 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 Sirius. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and Sirius.
Diversification Opportunities for MSCI ACWI and Sirius
Very good diversification
The 3 months correlation between MSCI and Sirius is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and Sirius XM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius XM Holdings 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 Sirius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius XM Holdings has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and Sirius go up and down completely randomly.
Pair Corralation between MSCI ACWI and Sirius
Assuming the 90 days horizon MSCI ACWI exAUCONSUMER is expected to generate 0.72 times more return on investment than Sirius. However, MSCI ACWI exAUCONSUMER is 1.39 times less risky than Sirius. It trades about 0.06 of its potential returns per unit of risk. Sirius XM Holdings is currently generating about 0.02 per unit of risk. If you would invest 2,145 in MSCI ACWI exAUCONSUMER on September 25, 2024 and sell it today you would earn a total of 336.00 from holding MSCI ACWI exAUCONSUMER or generate 15.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.99% |
Values | Daily Returns |
MSCI ACWI exAUCONSUMER vs. Sirius XM Holdings
Performance |
Timeline |
MSCI ACWI exAUCONSUMER |
Sirius XM Holdings |
MSCI ACWI and Sirius Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MSCI ACWI and Sirius
The main advantage of trading using opposite MSCI ACWI and Sirius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCI ACWI position performs unexpectedly, Sirius 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 Sirius will offset losses from the drop in Sirius' long position.MSCI ACWI vs. Visa Class A | MSCI ACWI vs. Diamond Hill Investment | MSCI ACWI vs. Distoken Acquisition | MSCI ACWI vs. AllianceBernstein Holding LP |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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