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
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and TBG is 0.1. 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 generate 4.06 times more return on investment than EA Series. However, IShares MSCI is 4.06 times more volatile than EA Series Trust. It trades about 0.05 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.07 per unit of risk. If you would invest 4,786 in iShares MSCI China on September 13, 2024 and sell it today you would earn a total of 99.00 from holding iShares MSCI China or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| 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. Freedom Day Dividend | EA Series vs. Franklin Templeton ETF | EA Series vs. iShares MSCI China | EA Series 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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