Correlation Between IShares MSCI and ProShares MSCI
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and ProShares 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 IShares MSCI and ProShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Emerging and ProShares MSCI Emerging, you can compare the effects of market volatilities on IShares MSCI and ProShares 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 IShares MSCI with a short position of ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and ProShares MSCI.
Diversification Opportunities for IShares MSCI and ProShares MSCI
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and ProShares is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Emerging and ProShares MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Emerging 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 Emerging are associated (or correlated) with ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Emerging has no effect on the direction of IShares MSCI i.e., IShares MSCI and ProShares MSCI go up and down completely randomly.
Pair Corralation between IShares MSCI and ProShares MSCI
Given the investment horizon of 90 days iShares MSCI Emerging is expected to generate 0.9 times more return on investment than ProShares MSCI. However, iShares MSCI Emerging is 1.11 times less risky than ProShares MSCI. It trades about 0.05 of its potential returns per unit of risk. ProShares MSCI Emerging is currently generating about 0.0 per unit of risk. If you would invest 4,589 in iShares MSCI Emerging on December 10, 2024 and sell it today you would earn a total of 962.00 from holding iShares MSCI Emerging or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
iShares MSCI Emerging vs. ProShares MSCI Emerging
Performance |
| Timeline |
| iShares MSCI Emerging |
| ProShares MSCI Emerging |
IShares MSCI and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and ProShares MSCI
The main advantage of trading using opposite IShares MSCI and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, ProShares 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 ProShares MSCI will offset losses from the drop in ProShares MSCI's long position.| IShares MSCI vs. iShares ESG Aware | ||
| IShares MSCI vs. iShares MSCI Emerging | ||
| IShares MSCI vs. iShares ESG Aware | ||
| IShares MSCI vs. iShares MSCI Europe |
| ProShares MSCI vs. ProShares MSCI EAFE | ||
| ProShares MSCI vs. ProShares MSCI Europe | ||
| ProShares MSCI vs. ProShares Russell 2000 | ||
| ProShares MSCI vs. ProShares SP MidCap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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