Correlation Between CHIM and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both CHIM 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 CHIM and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIM and iShares MSCI Australia, you can compare the effects of market volatilities on CHIM 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 CHIM with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIM and IShares MSCI.
Diversification Opportunities for CHIM and IShares MSCI
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHIM and IShares is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CHIM and iShares MSCI Australia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Australia and CHIM 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 CHIM 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 Australia has no effect on the direction of CHIM i.e., CHIM and IShares MSCI go up and down completely randomly.
Pair Corralation between CHIM and IShares MSCI
If you would invest 2,590 in iShares MSCI Australia on August 28, 2024 and sell it today you would earn a total of 42.00 from holding iShares MSCI Australia or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CHIM vs. iShares MSCI Australia
Performance |
| Timeline |
| CHIM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI Australia |
CHIM and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIM and IShares MSCI
The main advantage of trading using opposite CHIM and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIM 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.| CHIM vs. iShares MSCI Singapore | CHIM vs. iShares MSCI Malaysia | CHIM vs. iShares MSCI Australia | CHIM vs. iShares MSCI South |
| IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. HUMANA INC | IShares MSCI vs. SCOR PK | IShares MSCI vs. Aquagold International |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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