Correlation Between EA Series and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both EA Series 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 EA Series and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and iShares MSCI USA, you can compare the effects of market volatilities on EA Series 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 EA Series with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and IShares MSCI.
Diversification Opportunities for EA Series and IShares MSCI
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TBG and IShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA and EA Series 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 EA Series 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 USA has no effect on the direction of EA Series i.e., EA Series and IShares MSCI go up and down completely randomly.
Pair Corralation between EA Series and IShares MSCI
Considering the 90-day investment horizon EA Series Trust is expected to generate 0.78 times more return on investment than IShares MSCI. However, EA Series Trust is 1.29 times less risky than IShares MSCI. It trades about 0.19 of its potential returns per unit of risk. iShares MSCI USA is currently generating about 0.12 per unit of risk. If you would invest 2,431 in EA Series Trust on August 30, 2024 and sell it today you would earn a total of 956.00 from holding EA Series Trust or generate 39.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 53.94% |
| Values | Daily Returns |
EA Series Trust vs. iShares MSCI USA
Performance |
| Timeline |
| EA Series Trust |
| iShares MSCI USA |
EA Series and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and IShares MSCI
The main advantage of trading using opposite EA Series and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series 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.| EA Series vs. iShares MSCI USA | EA Series vs. ABIVAX Socit Anonyme | EA Series vs. HUMANA INC | EA Series vs. SCOR PK |
| IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. Invesco SP 500 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |