Correlation Between Horizon Kinetics and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics 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 Horizon Kinetics and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics SPAC and iShares MSCI United, you can compare the effects of market volatilities on Horizon Kinetics 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 Horizon Kinetics with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and IShares MSCI.
Diversification Opportunities for Horizon Kinetics and IShares MSCI
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Horizon and IShares is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics SPAC and iShares MSCI United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI United and Horizon Kinetics 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 Horizon Kinetics SPAC 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 United has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and IShares MSCI go up and down completely randomly.
Pair Corralation between Horizon Kinetics and IShares MSCI
Given the investment horizon of 90 days Horizon Kinetics SPAC is expected to generate 0.42 times more return on investment than IShares MSCI. However, Horizon Kinetics SPAC is 2.36 times less risky than IShares MSCI. It trades about 0.03 of its potential returns per unit of risk. iShares MSCI United is currently generating about -0.28 per unit of risk. If you would invest 10,016 in Horizon Kinetics SPAC on August 23, 2024 and sell it today you would earn a total of 24.00 from holding Horizon Kinetics SPAC or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Horizon Kinetics SPAC vs. iShares MSCI United
Performance |
| Timeline |
| Horizon Kinetics SPAC |
| iShares MSCI United |
Horizon Kinetics and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and IShares MSCI
The main advantage of trading using opposite Horizon Kinetics and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics 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.| Horizon Kinetics vs. Global X E commerce | Horizon Kinetics vs. Global X Genomics | Horizon Kinetics vs. Global X Cloud | Horizon Kinetics vs. Global X FinTech |
| IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Germany | IShares MSCI vs. iShares MSCI Switzerland | IShares MSCI vs. iShares MSCI Singapore |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |