Correlation Between IShares MSCI and Global X
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Thailand and Global X MSCI, you can compare the effects of market volatilities on IShares MSCI and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Global X.
Diversification Opportunities for IShares MSCI and Global X
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Global is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Thailand and Global X MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X MSCI 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 Thailand are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X MSCI has no effect on the direction of IShares MSCI i.e., IShares MSCI and Global X go up and down completely randomly.
Pair Corralation between IShares MSCI and Global X
Considering the 90-day investment horizon IShares MSCI is expected to generate 114.06 times less return on investment than Global X. But when comparing it to its historical volatility, iShares MSCI Thailand is 1.61 times less risky than Global X. It trades about 0.0 of its potential returns per unit of risk. Global X MSCI is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,610 in Global X MSCI on August 28, 2024 and sell it today you would earn a total of 3,707 from holding Global X MSCI or generate 80.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Thailand vs. Global X MSCI
Performance |
| Timeline |
| iShares MSCI Thailand |
| Global X MSCI |
IShares MSCI and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Global X
The main advantage of trading using opposite IShares MSCI and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| IShares MSCI vs. iShares MSCI Philippines | IShares MSCI vs. iShares MSCI Indonesia | IShares MSCI vs. iShares MSCI Turkey | IShares MSCI vs. iShares MSCI Chile |
| Global X vs. Global X MSCI | Global X vs. iShares MSCI Peru | Global X vs. iShares MSCI Chile | Global X vs. Global X MSCI |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |