Correlation Between IShares and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both IShares and IShares 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 and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares and iShares MSCI United, you can compare the effects of market volatilities on IShares and IShares 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 with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares and IShares MSCI.
Diversification Opportunities for IShares and IShares MSCI
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and IShares is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding IShares and iShares MSCI United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI United and IShares 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 are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI United has no effect on the direction of IShares i.e., IShares and IShares MSCI go up and down completely randomly.
Pair Corralation between IShares and IShares MSCI
Given the investment horizon of 90 days IShares is expected to generate 1.15 times less return on investment than IShares MSCI. But when comparing it to its historical volatility, IShares is 1.72 times less risky than IShares MSCI. It trades about 0.05 of its potential returns per unit of risk. iShares MSCI United is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,199 in iShares MSCI United on September 3, 2024 and sell it today you would earn a total of 504.00 from holding iShares MSCI United or generate 15.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.0% |
| Values | Daily Returns |
IShares vs. iShares MSCI United
Performance |
| Timeline |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI United |
IShares and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares and IShares MSCI
The main advantage of trading using opposite IShares and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| IShares vs. iShares Currency Hedged | IShares vs. iShares Currency Hedged | IShares vs. iShares Currency Hedged |
| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Taiwan |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |