Correlation Between IShares MSCI and Allfunds

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

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

Diversification Opportunities for IShares MSCI and Allfunds

0.0

Correlation Coefficient

IShares MSCI  Allfunds

Pay attention - limited upside

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

Pair Corralation between IShares MSCI and Allfunds

If you would invest  0.00  in iShares MSCI USA on December 4, 2024 and sell it today you would earn a total of  0.00  from holding iShares MSCI USA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

iShares MSCI USA  vs.  Allfunds Group

iShares MSCI USA

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares MSCI USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IShares MSCI is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Allfunds Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allfunds Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with IShares MSCI and Allfunds

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

The idea behind iShares MSCI USA and Allfunds Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.