Correlation Between 21Shares Polkadot and IShares MSCI

Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot 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 21Shares Polkadot and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 21Shares Polkadot ETP and iShares MSCI Korea, you can compare the effects of market volatilities on 21Shares Polkadot 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 21Shares Polkadot with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and IShares MSCI.

Diversification Opportunities for 21Shares Polkadot and IShares MSCI

0.0

Correlation Coefficient

21Shares Polkadot  IShares MSCI

Pay attention - limited upside

The 3 months correlation between 21Shares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and iShares MSCI Korea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Korea and 21Shares Polkadot 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 21Shares Polkadot ETP 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 Korea has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and IShares MSCI go up and down completely randomly.

Pair Corralation between 21Shares Polkadot and IShares MSCI

If you would invest (100.00) in 21Shares Polkadot ETP on October 7, 2024 and sell it today you would earn a total of  100.00  from holding 21Shares Polkadot ETP or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

21Shares Polkadot ETP  vs.  iShares MSCI Korea

21Shares Polkadot ETP

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days 21Shares Polkadot ETP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, 21Shares Polkadot is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

iShares MSCI Korea

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares MSCI Korea has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the fund sophisticated investors.

Pair Trading with 21Shares Polkadot and IShares MSCI

The main advantage of trading using opposite 21Shares Polkadot and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot 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.

The idea behind 21Shares Polkadot ETP and iShares MSCI Korea pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.