Correlation Between CI Gold and IShares MSCI

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Can any of the company-specific risk be diversified away by investing in both CI Gold 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 CI Gold and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Gold Giants and iShares MSCI Min, you can compare the effects of market volatilities on CI Gold 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 CI Gold with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Gold and IShares MSCI.

Diversification Opportunities for CI Gold and IShares MSCI

0.4
  Correlation Coefficient

Very weak diversification

The 3 months correlation between CGXF and IShares is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding CI Gold Giants and iShares MSCI Min in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Min and CI Gold 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 CI Gold Giants 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 Min has no effect on the direction of CI Gold i.e., CI Gold and IShares MSCI go up and down completely randomly.

Pair Corralation between CI Gold and IShares MSCI

Assuming the 90 days trading horizon CI Gold Giants is expected to generate 3.37 times more return on investment than IShares MSCI. However, CI Gold is 3.37 times more volatile than iShares MSCI Min. It trades about 0.09 of its potential returns per unit of risk. iShares MSCI Min is currently generating about -0.1 per unit of risk. If you would invest  1,850  in CI Gold Giants on September 10, 2025 and sell it today you would earn a total of  73.00  from holding CI Gold Giants or generate 3.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

CI Gold Giants  vs.  iShares MSCI Min

 Performance 
       Timeline  
CI Gold Giants 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CI Gold Giants are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, CI Gold displayed solid returns over the last few months and may actually be approaching a breakup point.
iShares MSCI Min 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days iShares MSCI Min has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, IShares MSCI is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

CI Gold and IShares MSCI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CI Gold and IShares MSCI

The main advantage of trading using opposite CI Gold and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Gold 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 CI Gold Giants and iShares MSCI Min 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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