Correlation Between IShares MSCI and FundX Aggressive
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and FundX Aggressive 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 FundX Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI USA and FundX Aggressive ETF, you can compare the effects of market volatilities on IShares MSCI and FundX Aggressive 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 FundX Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and FundX Aggressive.
Diversification Opportunities for IShares MSCI and FundX Aggressive
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and FundX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI USA and FundX Aggressive ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FundX Aggressive ETF 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 USA are associated (or correlated) with FundX Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FundX Aggressive ETF has no effect on the direction of IShares MSCI i.e., IShares MSCI and FundX Aggressive go up and down completely randomly.
Pair Corralation between IShares MSCI and FundX Aggressive
Given the investment horizon of 90 days iShares MSCI USA is expected to generate 0.95 times more return on investment than FundX Aggressive. However, iShares MSCI USA is 1.05 times less risky than FundX Aggressive. It trades about 0.08 of its potential returns per unit of risk. FundX Aggressive ETF is currently generating about 0.08 per unit of risk. If you would invest 14,469 in iShares MSCI USA on September 3, 2024 and sell it today you would earn a total of 7,183 from holding iShares MSCI USA or generate 49.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI USA vs. FundX Aggressive ETF
Performance |
| Timeline |
| iShares MSCI USA |
| FundX Aggressive ETF |
IShares MSCI and FundX Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and FundX Aggressive
The main advantage of trading using opposite IShares MSCI and FundX Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, FundX Aggressive 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 FundX Aggressive will offset losses from the drop in FundX Aggressive's long position.| IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares Expanded Tech Software |
| FundX Aggressive vs. Series Portfolios Trust | FundX Aggressive vs. FT Vest Equity | FundX Aggressive vs. Zillow Group Class | FundX Aggressive vs. Northern Lights |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |