Correlation Between Multi Units and IShares Developed

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

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

Diversification Opportunities for Multi Units and IShares Developed

0.0

Correlation Coefficient

Multi Units  IShares Developed

Pay attention - limited upside

The 3 months correlation between Multi and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units Luxembourg and iShares Developed Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Developed Markets and Multi Units 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 Multi Units Luxembourg are associated (or correlated) with IShares Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Developed Markets has no effect on the direction of Multi Units i.e., Multi Units and IShares Developed go up and down completely randomly.

Pair Corralation between Multi Units and IShares Developed

If you would invest (100.00) in iShares Developed Markets on September 9, 2025 and sell it today you would earn a total of  100.00  from holding iShares Developed Markets or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Multi Units Luxembourg  vs.  iShares Developed Markets

Multi Units Luxembourg

Risk-Adjusted Performance

Weakest

Over the last 90 days Multi Units Luxembourg has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Multi Units is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

iShares Developed Markets

Risk-Adjusted Performance

Weakest

Over the last 90 days iShares Developed Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IShares Developed is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Multi Units and IShares Developed

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

The idea behind Multi Units Luxembourg and iShares Developed Markets 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 CEOs Directory module to screen CEOs from public companies around the world.