Correlation Between IShares MSCI and CHIR
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and CHIR 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 IShares MSCI and CHIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI China and CHIR, you can compare the effects of market volatilities on IShares MSCI and CHIR 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 IShares MSCI with a short position of CHIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and CHIR.
Diversification Opportunities for IShares MSCI and CHIR
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and CHIR is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and CHIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIR and IShares MSCI 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 iShares MSCI China are associated (or correlated) with CHIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIR has no effect on the direction of IShares MSCI i.e., IShares MSCI and CHIR go up and down completely randomly.
Pair Corralation between IShares MSCI and CHIR
If you would invest 2,390 in iShares MSCI China on September 12, 2024 and sell it today you would earn a total of 548.00 from holding iShares MSCI China or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
iShares MSCI China vs. CHIR
Performance |
| Timeline |
| iShares MSCI China |
| CHIR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and CHIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and CHIR
The main advantage of trading using opposite IShares MSCI and CHIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, CHIR 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 CHIR will offset losses from the drop in CHIR's long position.| IShares MSCI vs. iShares MSCI China | IShares MSCI vs. KraneShares Bosera MSCI | IShares MSCI vs. WisdomTree China ex State Owned | IShares MSCI vs. iShares MSCI China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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