Correlation Between PGAL and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both PGAL 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 PGAL and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGAL and IShares MSCI South, you can compare the effects of market volatilities on PGAL 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 PGAL with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGAL and IShares MSCI.
Diversification Opportunities for PGAL and IShares MSCI
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PGAL and IShares is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PGAL and IShares MSCI South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares MSCI South and PGAL 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 PGAL 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 South has no effect on the direction of PGAL i.e., PGAL and IShares MSCI go up and down completely randomly.
Pair Corralation between PGAL and IShares MSCI
If you would invest 6,415 in IShares MSCI South on December 30, 2023 and sell it today you would earn a total of 296.00 from holding IShares MSCI South or generate 4.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 27.27% |
Values | Daily Returns |
PGAL vs. IShares MSCI South
Performance |
Timeline |
PGAL |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
IShares MSCI South |
PGAL and IShares MSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PGAL and IShares MSCI
The main advantage of trading using opposite PGAL and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGAL 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.PGAL vs. WisdomTree Europe Hedged | PGAL vs. Vanguard Total Bond | PGAL vs. IShares Europe ETF | PGAL vs. IShares Core SP |
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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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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