Correlation Between IShares MSCI and BLNG

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

By analyzing existing cross correlation between iShares MSCI Emerging and BLNG, you can compare the effects of market volatilities on IShares MSCI and BLNG 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 BLNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and BLNG.

Diversification Opportunities for IShares MSCI and BLNG

0.0

Correlation Coefficient

IShares MSCI  BLNG

Pay attention - limited upside

The 3 months correlation between IShares and BLNG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Emerging and BLNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLNG 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 Emerging are associated (or correlated) with BLNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLNG has no effect on the direction of IShares MSCI i.e., IShares MSCI and BLNG go up and down completely randomly.

Pair Corralation between IShares MSCI and BLNG

If you would invest  4,182  in iShares MSCI Emerging on October 9, 2024 and sell it today you would earn a total of  48.00  from holding iShares MSCI Emerging or generate 1.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.61%
Values	Daily Returns

iShares MSCI Emerging  vs.  BLNG

iShares MSCI Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares MSCI Emerging has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

BLNG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BLNG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BLNG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with IShares MSCI and BLNG

The main advantage of trading using opposite IShares MSCI and BLNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, BLNG 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 BLNG will offset losses from the drop in BLNG's long position.

The idea behind iShares MSCI Emerging and BLNG 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.