Correlation Between IShares MSCI and CHIE
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and CHIE 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 CHIE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Taiwan and CHIE, you can compare the effects of market volatilities on IShares MSCI and CHIE 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 CHIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and CHIE.
Diversification Opportunities for IShares MSCI and CHIE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and CHIE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Taiwan and CHIE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIE 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 Taiwan are associated (or correlated) with CHIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIE has no effect on the direction of IShares MSCI i.e., IShares MSCI and CHIE go up and down completely randomly.
Pair Corralation between IShares MSCI and CHIE
If you would invest 4,340 in iShares MSCI Taiwan on September 4, 2024 and sell it today you would earn a total of 1,079 from holding iShares MSCI Taiwan or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
iShares MSCI Taiwan vs. CHIE
Performance |
| Timeline |
| iShares MSCI Taiwan |
| CHIE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and CHIE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and CHIE
The main advantage of trading using opposite IShares MSCI and CHIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, CHIE 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 CHIE will offset losses from the drop in CHIE's long position.| IShares MSCI vs. iShares MSCI South | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. iShares MSCI Singapore | IShares MSCI vs. iShares MSCI Malaysia |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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