Correlation Between 707 Cayman and IShares MSCI

Can any of the company-specific risk be diversified away by investing in both 707 Cayman 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 707 Cayman and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 707 Cayman Holdings and iShares MSCI Peru, you can compare the effects of market volatilities on 707 Cayman 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 707 Cayman with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of 707 Cayman and IShares MSCI.

Diversification Opportunities for 707 Cayman and IShares MSCI

-0.76

Correlation Coefficient

707 Cayman  IShares MSCI

Pay attention - limited upside

The 3 months correlation between 707 and IShares is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding 707 Cayman Holdings and iShares MSCI Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Peru and 707 Cayman 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 707 Cayman Holdings 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 Peru has no effect on the direction of 707 Cayman i.e., 707 Cayman and IShares MSCI go up and down completely randomly.

Pair Corralation between 707 Cayman and IShares MSCI

Considering the 90-day investment horizon 707 Cayman Holdings is expected to under-perform the IShares MSCI. In addition to that, 707 Cayman is 3.78 times more volatile than iShares MSCI Peru. It trades about -0.11 of its total potential returns per unit of risk. iShares MSCI Peru is currently generating about 0.21 per unit of volatility. If you would invest  6,239  in iShares MSCI Peru on October 9, 2025 and sell it today you would earn a total of  1,432  from holding iShares MSCI Peru or generate 22.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

707 Cayman Holdings  vs.  iShares MSCI Peru

707 Cayman Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days 707 Cayman Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Etf's technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2026. The recent disarray may also be a sign of long period up-swing for the ETF investors.

iShares MSCI Peru

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Peru are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, IShares MSCI unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 707 Cayman and IShares MSCI

The main advantage of trading using opposite 707 Cayman and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 707 Cayman 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 707 Cayman Holdings and iShares MSCI Peru 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.