Correlation Between PGAL and IShares MSCI

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy27.27%
ValuesDaily Returns

PGAL  vs.  IShares MSCI South

 Performance 
       Timeline  
PGAL 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days PGAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, PGAL is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
IShares MSCI South 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in IShares MSCI South are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, IShares MSCI is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind PGAL and IShares MSCI South pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
CEOs Directory
Screen CEOs from public companies around the world
Equity Valuation
Check real value of public entities based on technical and fundamental data
FinTech Suite
Use AI to screen and filter profitable investment opportunities