Correlation Between IShares MSCI and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Horizon Kinetics 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 Horizon Kinetics 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 Horizon Kinetics SPAC, you can compare the effects of market volatilities on IShares MSCI and Horizon Kinetics 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 Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Horizon Kinetics.
Diversification Opportunities for IShares MSCI and Horizon Kinetics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Horizon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and Horizon Kinetics SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics SPAC 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 Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics SPAC has no effect on the direction of IShares MSCI i.e., IShares MSCI and Horizon Kinetics go up and down completely randomly.
Pair Corralation between IShares MSCI and Horizon Kinetics
Given the investment horizon of 90 days iShares MSCI China is expected to generate 4.94 times more return on investment than Horizon Kinetics. However, IShares MSCI is 4.94 times more volatile than Horizon Kinetics SPAC. It trades about 0.01 of its potential returns per unit of risk. Horizon Kinetics SPAC is currently generating about 0.07 per unit of risk. If you would invest 4,695 in iShares MSCI China on November 9, 2024 and sell it today you would earn a total of 217.00 from holding iShares MSCI China or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.51% |
| Values | Daily Returns |
iShares MSCI China vs. Horizon Kinetics SPAC
Performance |
| Timeline |
| iShares MSCI China |
| Horizon Kinetics SPAC |
IShares MSCI and Horizon Kinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Horizon Kinetics
The main advantage of trading using opposite IShares MSCI and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' 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 |
| Horizon Kinetics vs. Freedom Day Dividend | Horizon Kinetics vs. Franklin Templeton ETF | Horizon Kinetics vs. iShares MSCI China | Horizon Kinetics vs. Tidal Trust II |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |