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Correlation Between IShares Core and Bunge

Analyzing existing cross correlation between IShares Core MSCI Emerging Mark and Bunge Limited. You can compare the effects of market volatilities on IShares Core and Bunge 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 Core with a short position of Bunge. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Bunge.

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Diversification Opportunities for IShares Core and Bunge

IShares Core MSCI Emerging Mar diversification synergy
0.76
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Poor diversification

The 3 months correlation between IShares and Bunge is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding IShares Core MSCI Emerging Mar and Bunge Limited in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bunge Limited and IShares Core 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 Core MSCI Emerging Mark are associated (or correlated) with Bunge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bunge Limited has no effect on the direction of IShares Core i.e. IShares Core and Bunge go up and down completely randomly.

Pair Corralation between IShares Core and Bunge

Given the investment horizon of 30 days, IShares Core MSCI Emerging Mark is expected to generate 0.81 times more return on investment than Bunge. However, IShares Core MSCI Emerging Mark is 1.23 times less risky than Bunge. It trades about -0.06 of its potential returns per unit of risk. Bunge Limited is currently generating about -0.11 per unit of risk. If you would invest  5,117  in IShares Core MSCI Emerging Mark on January 28, 2020 and sell it today you would lose (243.00)  from holding IShares Core MSCI Emerging Mark or give up 4.75% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

IShares Core MSCI Emerging Mar  vs.  Bunge Limited

 Performance (%) 
    
  Timeline 
IShares Core MSCI 
00

Risk-Adjusted Performance

Over the last 30 days IShares Core MSCI Emerging Mark has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, IShares Core is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
Bunge Limited 
00

Risk-Adjusted Performance

Over the last 30 days Bunge Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

IShares Core and Bunge Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.