Correlation Between First Physicians and MSCI ACWI

Can any of the company-specific risk be diversified away by investing in both First Physicians and MSCI ACWI 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 First Physicians and MSCI ACWI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First Physicians Capital and MSCI ACWI exAUCONSUMER, you can compare the effects of market volatilities on First Physicians and MSCI ACWI 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 First Physicians with a short position of MSCI ACWI. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Physicians and MSCI ACWI.

Diversification Opportunities for First Physicians and MSCI ACWI

0.0

Correlation Coefficient

First Physicians  MSCI ACWI

Pay attention - limited upside

The 3 months correlation between First and MSCI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Physicians Capital and MSCI ACWI exAUCONSUMER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI ACWI exAUCONSUMER and First Physicians 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 First Physicians Capital are associated (or correlated) with MSCI ACWI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI ACWI exAUCONSUMER has no effect on the direction of First Physicians i.e., First Physicians and MSCI ACWI go up and down completely randomly.

Pair Corralation between First Physicians and MSCI ACWI

If you would invest  2,454  in MSCI ACWI exAUCONSUMER on May 26, 2025 and sell it today you would earn a total of  64.00  from holding MSCI ACWI exAUCONSUMER or generate 2.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

First Physicians Capital  vs.  MSCI ACWI exAUCONSUMER

First Physicians Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days First Physicians Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, First Physicians is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

MSCI ACWI exAUCONSUMER

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MSCI ACWI exAUCONSUMER are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, MSCI ACWI is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with First Physicians and MSCI ACWI

The main advantage of trading using opposite First Physicians and MSCI ACWI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Physicians position performs unexpectedly, MSCI ACWI 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 MSCI ACWI will offset losses from the drop in MSCI ACWI's long position.

The idea behind First Physicians Capital and MSCI ACWI exAUCONSUMER 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.