Correlation Between IShares MSCI and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Meta Platforms 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 Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares MSCI EAFE and Meta Platforms, you can compare the effects of market volatilities on IShares MSCI and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Meta Platforms.
Diversification Opportunities for IShares MSCI and Meta Platforms
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Meta is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding IShares MSCI EAFE and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 EAFE are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of IShares MSCI i.e., IShares MSCI and Meta Platforms go up and down completely randomly.
Pair Corralation between IShares MSCI and Meta Platforms
If you would invest 6,952 in IShares MSCI EAFE on December 30, 2023 and sell it today you would earn a total of 136.00 from holding IShares MSCI EAFE or generate 1.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
IShares MSCI EAFE vs. Meta Platforms
Performance |
Timeline |
IShares MSCI EAFE |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
IShares MSCI and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares MSCI and Meta Platforms
The main advantage of trading using opposite IShares MSCI and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.IShares MSCI vs. Vanguard US Minimum | IShares MSCI vs. ProShares VIX Mid Term | IShares MSCI vs. ProShares VIX Short Term | IShares MSCI vs. ETF Series Solutions |
Meta Platforms vs. Amgen Inc | Meta Platforms vs. Apogee Enterprises | Meta Platforms vs. Simpson Manufacturing | Meta Platforms vs. Western Digital |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements |