Correlation Between IShares MSCI and IShares MSCI

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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 Netherlands and iShares MSCI Belgium, 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

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between IShares and IShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Netherlands and iShares MSCI Belgium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Belgium 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 Netherlands 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 Belgium 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 is expected to generate 1.03 times less return on investment than IShares MSCI. In addition to that, IShares MSCI is 1.34 times more volatile than iShares MSCI Belgium. It trades about 0.09 of its total potential returns per unit of risk. iShares MSCI Belgium is currently generating about 0.12 per unit of volatility. If you would invest  1,839  in iShares MSCI Belgium on March 6, 2024 and sell it today you would earn a total of  104.00  from holding iShares MSCI Belgium or generate 5.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

iShares MSCI Netherlands  vs.  iShares MSCI Belgium

 Performance 
       Timeline  
iShares MSCI Netherlands 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Netherlands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, IShares MSCI is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
iShares MSCI Belgium 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Belgium are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, IShares MSCI is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

IShares MSCI and IShares MSCI Volatility Contrast

   Predicted Return Density   
       Returns