Correlation Between Invesco MSCI and IShares Global
Can any of the company-specific risk be diversified away by investing in both Invesco MSCI and IShares Global 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 Invesco MSCI and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco MSCI Global and iShares Global Timber, you can compare the effects of market volatilities on Invesco MSCI and IShares Global 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 Invesco MSCI with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco MSCI and IShares Global.
Diversification Opportunities for Invesco MSCI and IShares Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Invesco and IShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Invesco MSCI Global and iShares Global Timber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Timber and Invesco 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 Invesco MSCI Global are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Timber has no effect on the direction of Invesco MSCI i.e., Invesco MSCI and IShares Global go up and down completely randomly.
Pair Corralation between Invesco MSCI and IShares Global
Considering the 90-day investment horizon Invesco MSCI Global is expected to generate 0.99 times more return on investment than IShares Global. However, Invesco MSCI Global is 1.01 times less risky than IShares Global. It trades about -0.08 of its potential returns per unit of risk. iShares Global Timber is currently generating about -0.11 per unit of risk. If you would invest 3,041 in Invesco MSCI Global on September 10, 2025 and sell it today you would lose (145.00) from holding Invesco MSCI Global or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Invesco MSCI Global vs. iShares Global Timber
Performance |
| Timeline |
| Invesco MSCI Global |
| iShares Global Timber |
Invesco MSCI and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco MSCI and IShares Global
The main advantage of trading using opposite Invesco MSCI and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco MSCI position performs unexpectedly, IShares Global 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 Global will offset losses from the drop in IShares Global's long position.| Invesco MSCI vs. Global X Blockchain | Invesco MSCI vs. Global X MSCI | Invesco MSCI vs. Hartford Multifactor Emerging | Invesco MSCI vs. SPDR MSCI Emerging |
| IShares Global vs. iShares Global Utilities | IShares Global vs. iShares Global Materials | IShares Global vs. iShares MSCI Thailand | IShares Global vs. iShares MSCI Malaysia |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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