Correlation Between IShares MSCI and ETFis Series
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and ETFis Series 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 ETFis Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Turkey and ETFis Series Trust, you can compare the effects of market volatilities on IShares MSCI and ETFis Series 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 ETFis Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and ETFis Series.
Diversification Opportunities for IShares MSCI and ETFis Series
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and ETFis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Turkey and ETFis Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFis Series Trust 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 Turkey are associated (or correlated) with ETFis Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFis Series Trust has no effect on the direction of IShares MSCI i.e., IShares MSCI and ETFis Series go up and down completely randomly.
Pair Corralation between IShares MSCI and ETFis Series
Considering the 90-day investment horizon IShares MSCI is expected to generate 1.25 times less return on investment than ETFis Series. In addition to that, IShares MSCI is 2.98 times more volatile than ETFis Series Trust. It trades about 0.02 of its total potential returns per unit of risk. ETFis Series Trust is currently generating about 0.08 per unit of volatility. If you would invest 1,473 in ETFis Series Trust on September 4, 2024 and sell it today you would earn a total of 445.00 from holding ETFis Series Trust or generate 30.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Turkey vs. ETFis Series Trust
Performance |
| Timeline |
| iShares MSCI Turkey |
| ETFis Series Trust |
IShares MSCI and ETFis Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and ETFis Series
The main advantage of trading using opposite IShares MSCI and ETFis Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, ETFis Series 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 ETFis Series will offset losses from the drop in ETFis Series' long position.| IShares MSCI vs. iShares MSCI Thailand | IShares MSCI vs. iShares MSCI Chile | IShares MSCI vs. iShares MSCI South | IShares MSCI vs. iShares MSCI Indonesia |
| ETFis Series vs. Virtus InfraCap Preferred | ETFis Series vs. VanEck Preferred Securities | ETFis Series vs. Global X Preferred | ETFis Series vs. Innovator SP Investment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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