Correlation Between IShares MSCI and Altrius Global

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

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

Diversification Opportunities for IShares MSCI and Altrius Global

0.94

Correlation Coefficient

IShares MSCI  Altrius Global

Almost no diversification

The 3 months correlation between IShares and Altrius is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and Altrius Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altrius Global Dividend 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 China are associated (or correlated) with Altrius Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altrius Global Dividend has no effect on the direction of IShares MSCI i.e., IShares MSCI and Altrius Global go up and down completely randomly.

Pair Corralation between IShares MSCI and Altrius Global

Given the investment horizon of 90 days iShares MSCI China is expected to generate 2.54 times more return on investment than Altrius Global. However, IShares MSCI is 2.54 times more volatile than Altrius Global Dividend. It trades about 0.17 of its potential returns per unit of risk. Altrius Global Dividend is currently generating about 0.26 per unit of risk. If you would invest  4,695  in iShares MSCI China on December 29, 2024 and sell it today you would earn a total of  886.00  from holding iShares MSCI China or generate 18.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

iShares MSCI China  vs.  Altrius Global Dividend

iShares MSCI China

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI China are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, IShares MSCI demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Altrius Global Dividend

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Altrius Global Dividend are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Altrius Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with IShares MSCI and Altrius Global

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

The idea behind iShares MSCI China and Altrius Global Dividend 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.