Correlation Between IShares MSCI and EA Series
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and EA Series 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 EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI China and EA Series Trust, you can compare the effects of market volatilities on IShares MSCI and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and EA Series.
Diversification Opportunities for IShares MSCI and EA Series
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and ECML is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 China are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of IShares MSCI i.e., IShares MSCI and EA Series go up and down completely randomly.
Pair Corralation between IShares MSCI and EA Series
Given the investment horizon of 90 days iShares MSCI China is expected to under-perform the EA Series. In addition to that, IShares MSCI is 1.7 times more volatile than EA Series Trust. It trades about -0.11 of its total potential returns per unit of risk. EA Series Trust is currently generating about 0.26 per unit of volatility. If you would invest 3,334 in EA Series Trust on August 30, 2024 and sell it today you would earn a total of 245.00 from holding EA Series Trust or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI China vs. EA Series Trust
Performance |
| Timeline |
| iShares MSCI China |
| EA Series Trust |
IShares MSCI and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and EA Series
The main advantage of trading using opposite IShares MSCI and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| IShares MSCI vs. KraneShares CSI China | IShares MSCI vs. Invesco China Technology | IShares MSCI vs. iShares MSCI India | IShares MSCI vs. Xtrackers Harvest CSI |
| EA Series vs. Davis Select International | EA Series vs. Tidal ETF Trust | EA Series vs. Principal Value ETF | EA Series vs. WisdomTree Emerging Markets |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |