Correlation Between IShares MSCI and IShares MSCI

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 IShares MSCI and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI France and iShares MSCI Hong, you can compare the effects of market volatilities on IShares MSCI 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 IShares MSCI with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and IShares MSCI.

Diversification Opportunities for IShares MSCI and IShares MSCI

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between IShares and IShares is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI France and iShares MSCI Hong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Hong 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 France 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 Hong has no effect on the direction of IShares MSCI i.e., IShares MSCI and IShares MSCI go up and down completely randomly.

Pair Corralation between IShares MSCI and IShares MSCI

Considering the 90-day investment horizon iShares MSCI France is expected to under-perform the IShares MSCI. But the etf apears to be less risky and, when comparing its historical volatility, iShares MSCI France is 1.81 times less risky than IShares MSCI. The etf trades about -0.05 of its potential returns per unit of risk. The iShares MSCI Hong is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,592  in iShares MSCI Hong on September 8, 2024 and sell it today you would earn a total of  137.00  from holding iShares MSCI Hong or generate 8.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

iShares MSCI France  vs.  iShares MSCI Hong

 Performance 
       Timeline  
iShares MSCI France 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days iShares MSCI France has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IShares MSCI is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
iShares MSCI Hong 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Hong are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, IShares MSCI may actually be approaching a critical reversion point that can send shares even higher in January 2025.

IShares MSCI and IShares MSCI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares MSCI and IShares MSCI

The main advantage of trading using opposite IShares MSCI and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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 iShares MSCI France and iShares MSCI Hong 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.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device