Correlation Between IShares MSCI and IShares II
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and IShares II 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 IShares II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Japan and iShares II Public, you can compare the effects of market volatilities on IShares MSCI and IShares II 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 IShares II. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and IShares II.
Diversification Opportunities for IShares MSCI and IShares II
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Japan and iShares II Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares II Public 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 Japan are associated (or correlated) with IShares II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares II Public has no effect on the direction of IShares MSCI i.e., IShares MSCI and IShares II go up and down completely randomly.
Pair Corralation between IShares MSCI and IShares II
If you would invest 494.00 in iShares MSCI Japan on September 13, 2024 and sell it today you would earn a total of 17.00 from holding iShares MSCI Japan or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
iShares MSCI Japan vs. iShares II Public
Performance |
| Timeline |
| iShares MSCI Japan |
| iShares II Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and IShares II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and IShares II
The main advantage of trading using opposite IShares MSCI and IShares II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, IShares II 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 II will offset losses from the drop in IShares II's long position.| IShares MSCI vs. WisdomTree Natural Gas | IShares MSCI vs. Leverage Shares 3x | IShares MSCI vs. GraniteShares 3x Short | IShares MSCI vs. WisdomTree Natural Gas |
| IShares II vs. iShares MSCI Japan | IShares II vs. iShares JP Morgan | IShares II vs. iShares MSCI Europe | IShares II vs. iShares Nasdaq Biotechnology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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