Correlation Between Multi Units and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Multi Units 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 Multi Units and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units Luxembourg and iShares MSCI World, you can compare the effects of market volatilities on Multi Units 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 Multi Units with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and IShares MSCI.
Diversification Opportunities for Multi Units and IShares MSCI
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and IShares is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units Luxembourg and iShares MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI World and Multi Units 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 Multi Units Luxembourg 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 World has no effect on the direction of Multi Units i.e., Multi Units and IShares MSCI go up and down completely randomly.
Pair Corralation between Multi Units and IShares MSCI
Assuming the 90 days trading horizon Multi Units Luxembourg is expected to under-perform the IShares MSCI. In addition to that, Multi Units is 4.02 times more volatile than iShares MSCI World. It trades about -0.15 of its total potential returns per unit of risk. iShares MSCI World is currently generating about 0.21 per unit of volatility. If you would invest 7,621 in iShares MSCI World on October 20, 2024 and sell it today you would earn a total of 200.00 from holding iShares MSCI World or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units Luxembourg vs. iShares MSCI World
Performance |
| Timeline |
| Multi Units Luxembourg |
| iShares MSCI World |
Multi Units and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and IShares MSCI
The main advantage of trading using opposite Multi Units and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units 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.| Multi Units vs. LG Russell 2000 | Multi Units vs. VanEck Multi Asset Growth | Multi Units vs. iShares III Public | Multi Units vs. iShares Core MSCI |
| IShares MSCI vs. Vanguard SP 500 | IShares MSCI vs. SPDR Dow Jones | IShares MSCI vs. iShares Core MSCI | IShares MSCI vs. iShares SP 500 |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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