Correlation Between IShares Covered and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both IShares Covered 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 IShares Covered and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares Covered Bond and iShares MSCI Japan, you can compare the effects of market volatilities on IShares Covered 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 IShares Covered with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Covered and IShares MSCI.
Diversification Opportunities for IShares Covered and IShares MSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IShares Covered Bond and iShares MSCI Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Japan and IShares Covered 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 Covered Bond 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 Japan has no effect on the direction of IShares Covered i.e., IShares Covered and IShares MSCI go up and down completely randomly.
Pair Corralation between IShares Covered and IShares MSCI
If you would invest 318,257 in iShares MSCI Japan on August 27, 2024 and sell it today you would earn a total of 11,843 from holding iShares MSCI Japan or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IShares Covered Bond vs. iShares MSCI Japan
Performance |
| Timeline |
| IShares Covered Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI Japan |
IShares Covered and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Covered and IShares MSCI
The main advantage of trading using opposite IShares Covered and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Covered 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.| IShares Covered vs. iShares MSCI Japan | IShares Covered vs. iShares JP Morgan | IShares Covered vs. iShares MSCI Europe | IShares Covered vs. iShares Nasdaq Biotechnology |
| IShares MSCI vs. Leverage Shares 2x | IShares MSCI vs. WisdomTree Silver 3x | IShares MSCI vs. WisdomTree SP 500 | IShares MSCI vs. Lyxor 10Y Inflation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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