Correlation Between IShares MSCI and CI International
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and CI International 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 CI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI EAFE and CI International Quality, you can compare the effects of market volatilities on IShares MSCI and CI International 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 CI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and CI International.
Diversification Opportunities for IShares MSCI and CI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and IQD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI EAFE and CI International Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI International Quality 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 EAFE are associated (or correlated) with CI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI International Quality has no effect on the direction of IShares MSCI i.e., IShares MSCI and CI International go up and down completely randomly.
Pair Corralation between IShares MSCI and CI International
If you would invest 3,584 in iShares MSCI EAFE on September 12, 2024 and sell it today you would earn a total of 95.00 from holding iShares MSCI EAFE or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
iShares MSCI EAFE vs. CI International Quality
Performance |
| Timeline |
| iShares MSCI EAFE |
| CI International Quality |
IShares MSCI and CI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and CI International
The main advantage of trading using opposite IShares MSCI and CI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, CI International 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 CI International will offset losses from the drop in CI International's long position.| IShares MSCI vs. iShares SPTSX Completion | IShares MSCI vs. iShares Canadian Universe | IShares MSCI vs. iShares Core SP | IShares MSCI vs. iShares SPTSX Capped |
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.
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