Correlation Between Msvif Emerging and State Street

Can any of the company-specific risk be diversified away by investing in both Msvif Emerging and State Street 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 Msvif Emerging and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Msvif Emerging Mkts and State Street Global, you can compare the effects of market volatilities on Msvif Emerging and State Street 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 Msvif Emerging with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Msvif Emerging and State Street.

Diversification Opportunities for Msvif Emerging and State Street

0.0

Correlation Coefficient

Msvif Emerging  State Street

Pay attention - limited upside

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

Pair Corralation between Msvif Emerging and State Street

If you would invest  12,848  in State Street Global on May 10, 2025 and sell it today you would earn a total of  966.00  from holding State Street Global or generate 7.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Msvif Emerging Mkts  vs.  State Street Global

Msvif Emerging Mkts

Risk-Adjusted Performance

Solid

Over the last 90 days Msvif Emerging Mkts has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Msvif Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

State Street Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Global are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, State Street may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Msvif Emerging and State Street

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

The idea behind Msvif Emerging Mkts and State Street Global 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.