Correlation Between IShares MSCI and Wattanapat Hospital

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Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Wattanapat Hospital 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 IShares MSCI and Wattanapat Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares MSCI Brazil and Wattanapat Hospital Trang, you can compare the effects of market volatilities on IShares MSCI and Wattanapat Hospital 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 MSCI with a short position of Wattanapat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Wattanapat Hospital.

Diversification Opportunities for IShares MSCI and Wattanapat Hospital

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between IShares and Wattanapat is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding IShares MSCI Brazil and Wattanapat Hospital Trang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wattanapat Hospital Trang and IShares MSCI 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 MSCI Brazil are associated (or correlated) with Wattanapat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wattanapat Hospital Trang has no effect on the direction of IShares MSCI i.e., IShares MSCI and Wattanapat Hospital go up and down completely randomly.

Pair Corralation between IShares MSCI and Wattanapat Hospital

Considering the 90-day investment horizon IShares MSCI Brazil is expected to under-perform the Wattanapat Hospital. But the etf apears to be less risky and, when comparing its historical volatility, IShares MSCI Brazil is 3.87 times less risky than Wattanapat Hospital. The etf trades about -0.19 of its potential returns per unit of risk. The Wattanapat Hospital Trang is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  706.00  in Wattanapat Hospital Trang on December 29, 2023 and sell it today you would earn a total of  149.00  from holding Wattanapat Hospital Trang or generate 21.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

IShares MSCI Brazil  vs.  Wattanapat Hospital Trang

 Performance 
       Timeline  
IShares MSCI Brazil 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days IShares MSCI Brazil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.
Wattanapat Hospital Trang 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Wattanapat Hospital Trang are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical indicators, Wattanapat Hospital disclosed solid returns over the last few months and may actually be approaching a breakup point.

IShares MSCI and Wattanapat Hospital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares MSCI and Wattanapat Hospital

The main advantage of trading using opposite IShares MSCI and Wattanapat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Wattanapat Hospital 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 Wattanapat Hospital will offset losses from the drop in Wattanapat Hospital's long position.
The idea behind IShares MSCI Brazil and Wattanapat Hospital Trang 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.
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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