Correlation Between IShares MSCI and VanEck Vietnam
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and VanEck Vietnam 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 VanEck Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI India and VanEck Vietnam ETF, you can compare the effects of market volatilities on IShares MSCI and VanEck Vietnam 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 VanEck Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and VanEck Vietnam.
Diversification Opportunities for IShares MSCI and VanEck Vietnam
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and VanEck is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI India and VanEck Vietnam ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Vietnam 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 India are associated (or correlated) with VanEck Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Vietnam ETF has no effect on the direction of IShares MSCI i.e., IShares MSCI and VanEck Vietnam go up and down completely randomly.
Pair Corralation between IShares MSCI and VanEck Vietnam
Given the investment horizon of 90 days iShares MSCI India is expected to generate 1.19 times more return on investment than VanEck Vietnam. However, IShares MSCI is 1.19 times more volatile than VanEck Vietnam ETF. It trades about -0.07 of its potential returns per unit of risk. VanEck Vietnam ETF is currently generating about -0.13 per unit of risk. If you would invest 8,359 in iShares MSCI India on August 23, 2024 and sell it today you would lose (403.00) from holding iShares MSCI India or give up 4.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI India vs. VanEck Vietnam ETF
Performance |
| Timeline |
| iShares MSCI India |
| VanEck Vietnam ETF |
IShares MSCI and VanEck Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and VanEck Vietnam
The main advantage of trading using opposite IShares MSCI and VanEck Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, VanEck Vietnam 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 VanEck Vietnam will offset losses from the drop in VanEck Vietnam's long position.| IShares MSCI vs. iShares MSCI India | IShares MSCI vs. Invesco India ETF | IShares MSCI vs. WisdomTree India Earnings |
| VanEck Vietnam vs. iShares MSCI Thailand | VanEck Vietnam vs. iShares MSCI Indonesia | VanEck Vietnam vs. iShares MSCI Turkey | VanEck Vietnam vs. iShares MSCI Philippines |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |