Correlation Between IShares MSCI and GLCN
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and GLCN 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 GLCN 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 GLCN, you can compare the effects of market volatilities on IShares MSCI and GLCN 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 GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and GLCN.
Diversification Opportunities for IShares MSCI and GLCN
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and GLCN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN 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 GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of IShares MSCI i.e., IShares MSCI and GLCN go up and down completely randomly.
Pair Corralation between IShares MSCI and GLCN
If you would invest 2,615 in iShares MSCI China on September 1, 2024 and sell it today you would earn a total of 299.00 from holding iShares MSCI China or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
iShares MSCI China vs. GLCN
Performance |
| Timeline |
| iShares MSCI China |
| GLCN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and GLCN
The main advantage of trading using opposite IShares MSCI and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN'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 |
| GLCN vs. Xtrackers Harvest CSI | GLCN vs. Aquagold International | GLCN vs. Thrivent High Yield | GLCN vs. Morningstar Unconstrained Allocation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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