Correlation Between AbbVie and IShares MSCI

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

By analyzing existing cross correlation between AbbVie Inc and iShares MSCI Austria, you can compare the effects of market volatilities on AbbVie 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 AbbVie with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of AbbVie and IShares MSCI.

Diversification Opportunities for AbbVie and IShares MSCI

0.3

Correlation Coefficient

AbbVie  IShares MSCI

Weak diversification

The 3 months correlation between AbbVie and IShares is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding AbbVie Inc and iShares MSCI Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Austria and AbbVie 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 AbbVie Inc 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 Austria has no effect on the direction of AbbVie i.e., AbbVie and IShares MSCI go up and down completely randomly.

Pair Corralation between AbbVie and IShares MSCI

Given the investment horizon of 90 days AbbVie is expected to generate 1.33 times less return on investment than IShares MSCI. In addition to that, AbbVie is 1.64 times more volatile than iShares MSCI Austria. It trades about 0.09 of its total potential returns per unit of risk. iShares MSCI Austria is currently generating about 0.2 per unit of volatility. If you would invest  2,675  in iShares MSCI Austria on May 8, 2025 and sell it today you would earn a total of  304.00  from holding iShares MSCI Austria or generate 11.36% return on investment over 90 days.

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

AbbVie Inc  vs.  iShares MSCI Austria

AbbVie Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in AbbVie Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental drivers, AbbVie may actually be approaching a critical reversion point that can send shares even higher in September 2025.

iShares MSCI Austria

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Austria are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, IShares MSCI may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AbbVie and IShares MSCI

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

The idea behind AbbVie Inc and iShares MSCI Austria 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.