Correlation Between Mondelez International and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Mondelez 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 Mondelez 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 Mondelez International and iShares MSCI Global, you can compare the effects of market volatilities on Mondelez 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 Mondelez International with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondelez International and IShares MSCI.
Diversification Opportunities for Mondelez International and IShares MSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mondelez and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mondelez International and iShares MSCI Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Global and Mondelez 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 Mondelez 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 Global has no effect on the direction of Mondelez International i.e., Mondelez International and IShares MSCI go up and down completely randomly.
Pair Corralation between Mondelez International and IShares MSCI
Given the investment horizon of 90 days Mondelez International is expected to generate 1.06 times more return on investment than IShares MSCI. However, Mondelez International is 1.06 times more volatile than iShares MSCI Global. It trades about 0.12 of its potential returns per unit of risk. iShares MSCI Global is currently generating about -0.13 per unit of risk. If you would invest 6,961 in Mondelez International on January 26, 2024 and sell it today you would earn a total of 170.00 from holding Mondelez International or generate 2.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mondelez International vs. iShares MSCI Global
Performance |
Timeline |
Mondelez International |
iShares MSCI Global |
Mondelez International and IShares MSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mondelez International and IShares MSCI
The main advantage of trading using opposite Mondelez International and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondelez 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.Mondelez International vs. Chocoladefabriken Lindt Sprngli | Mondelez International vs. Barry Callebaut AG | Mondelez International vs. Tootsie Roll Industries |
IShares MSCI vs. SPDR MSCI EAFE | IShares MSCI vs. SPDR MSCI Emerging | IShares MSCI vs. SPDR MSCI USA | IShares MSCI vs. SPDR SP 1500 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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