Correlation Between Macquarie ETF and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Macquarie ETF 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 Macquarie ETF and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie ETF Trust and iShares MSCI Global, you can compare the effects of market volatilities on Macquarie ETF 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 Macquarie ETF with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie ETF and IShares MSCI.
Diversification Opportunities for Macquarie ETF and IShares MSCI
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Macquarie and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie ETF Trust and iShares MSCI Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Global and Macquarie ETF 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 Macquarie ETF Trust 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 Global has no effect on the direction of Macquarie ETF i.e., Macquarie ETF and IShares MSCI go up and down completely randomly.
Pair Corralation between Macquarie ETF and IShares MSCI
Given the investment horizon of 90 days Macquarie ETF Trust is expected to generate 1.51 times more return on investment than IShares MSCI. However, Macquarie ETF is 1.51 times more volatile than iShares MSCI Global. It trades about 0.05 of its potential returns per unit of risk. iShares MSCI Global is currently generating about -0.02 per unit of risk. If you would invest 2,494 in Macquarie ETF Trust on August 24, 2024 and sell it today you would earn a total of 408.00 from holding Macquarie ETF Trust or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.2% |
| Values | Daily Returns |
Macquarie ETF Trust vs. iShares MSCI Global
Performance |
| Timeline |
| Macquarie ETF Trust |
| iShares MSCI Global |
Macquarie ETF and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie ETF and IShares MSCI
The main advantage of trading using opposite Macquarie ETF and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie ETF 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.| Macquarie ETF vs. EA Series Trust | Macquarie ETF vs. EA Series Trust | Macquarie ETF vs. Rumble Inc | Macquarie ETF vs. EA Series Trust |
| IShares MSCI vs. iShares MSCI Global | IShares MSCI vs. iShares MSCI Global | IShares MSCI vs. iShares MSCI Global | IShares MSCI vs. VanEck Agribusiness ETF |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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