Correlation Between IShares MSCI and MicroSectors Gold

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

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

Diversification Opportunities for IShares MSCI and MicroSectors Gold

0.26

Correlation Coefficient

IShares MSCI  MicroSectors Gold

Modest diversification

The 3 months correlation between IShares and MicroSectors is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Norway and MicroSectors Gold Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroSectors Gold Miners 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 Norway are associated (or correlated) with MicroSectors Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroSectors Gold Miners has no effect on the direction of IShares MSCI i.e., IShares MSCI and MicroSectors Gold go up and down completely randomly.

Pair Corralation between IShares MSCI and MicroSectors Gold

Given the investment horizon of 90 days iShares MSCI Norway is expected to generate 0.1 times more return on investment than MicroSectors Gold. However, iShares MSCI Norway is 9.86 times less risky than MicroSectors Gold. It trades about -0.03 of its potential returns per unit of risk. MicroSectors Gold Miners is currently generating about -0.25 per unit of risk. If you would invest  2,778  in iShares MSCI Norway on September 4, 2025 and sell it today you would lose (18.00) from holding iShares MSCI Norway or give up 0.65% of portfolio value over 90 days.

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

iShares MSCI Norway  vs.  MicroSectors Gold Miners

iShares MSCI Norway

Risk-Adjusted Performance

Weakest

Over the last 90 days iShares MSCI Norway has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, IShares MSCI is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

MicroSectors Gold Miners

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroSectors Gold Miners has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Etf's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

Pair Trading with IShares MSCI and MicroSectors Gold

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

The idea behind iShares MSCI Norway and MicroSectors Gold Miners 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.