Correlation Between Msif Advantage and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Msif Advantage and Emerging Markets 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 Msif Advantage and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Msif Advantage Port and Emerging Markets Portfolio, you can compare the effects of market volatilities on Msif Advantage and Emerging Markets 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 Msif Advantage with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Msif Advantage and Emerging Markets.
Diversification Opportunities for Msif Advantage and Emerging Markets
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Msif and Emerging is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Msif Advantage Port and Emerging Markets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Por and Msif Advantage 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 Msif Advantage Port are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Por has no effect on the direction of Msif Advantage i.e., Msif Advantage and Emerging Markets go up and down completely randomly.
Pair Corralation between Msif Advantage and Emerging Markets
Assuming the 90 days horizon Msif Advantage Port is expected to generate 1.61 times more return on investment than Emerging Markets. However, Msif Advantage is 1.61 times more volatile than Emerging Markets Portfolio. It trades about 0.1 of its potential returns per unit of risk. Emerging Markets Portfolio is currently generating about 0.14 per unit of risk. If you would invest 2,756 in Msif Advantage Port on June 12, 2025 and sell it today you would earn a total of 198.00 from holding Msif Advantage Port or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Msif Advantage Port vs. Emerging Markets Portfolio
Performance |
| Timeline |
| Msif Advantage Port |
| Emerging Markets Por |
Msif Advantage and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Msif Advantage and Emerging Markets
The main advantage of trading using opposite Msif Advantage and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Msif Advantage position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Msif Advantage vs. Blrc Sgy Mnp | Msif Advantage vs. Morningstar Defensive Bond | Msif Advantage vs. Multisector Bond Sma | Msif Advantage vs. Old Westbury Fixed |
| Emerging Markets vs. Siit Emerging Markets | Emerging Markets vs. Barings Active Short | Emerging Markets vs. Kirr Marbach Partners | Emerging Markets vs. Semiconductor Ultrasector Profund |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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