Correlation Between IShares MSCI and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Xtrackers Harvest 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 Xtrackers Harvest 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 Xtrackers Harvest CSI, you can compare the effects of market volatilities on IShares MSCI and Xtrackers Harvest 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 Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Xtrackers Harvest.
Diversification Opportunities for IShares MSCI and Xtrackers Harvest
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Xtrackers is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and Xtrackers Harvest CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI 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 Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI has no effect on the direction of IShares MSCI i.e., IShares MSCI and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between IShares MSCI and Xtrackers Harvest
Given the investment horizon of 90 days iShares MSCI China is expected to generate 0.97 times more return on investment than Xtrackers Harvest. However, iShares MSCI China is 1.04 times less risky than Xtrackers Harvest. It trades about -0.02 of its potential returns per unit of risk. Xtrackers Harvest CSI is currently generating about -0.02 per unit of risk. If you would invest 3,133 in iShares MSCI China on January 24, 2024 and sell it today you would lose (526.00) from holding iShares MSCI China or give up 16.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
iShares MSCI China vs. Xtrackers Harvest CSI
Performance |
Timeline |
iShares MSCI China |
Xtrackers Harvest CSI |
IShares MSCI and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares MSCI and Xtrackers Harvest
The main advantage of trading using opposite IShares MSCI and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Xtrackers Harvest 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 Xtrackers Harvest will offset losses from the drop in Xtrackers Harvest's long position.IShares MSCI vs. iShares MSCI China | IShares MSCI vs. KraneShares Bosera MSCI | IShares MSCI vs. WisdomTree China ex State Owned | IShares MSCI vs. iShares MSCI China |
Xtrackers Harvest vs. Loncar Cancer Immunotherapy | Xtrackers Harvest vs. Aquagold International | Xtrackers Harvest vs. Morningstar Unconstrained Allocation | Xtrackers Harvest vs. Thrivent High Yield |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Commodity Directory Find actively traded commodities issued by global exchanges |