Correlation Between Dimensional ETF and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF 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 Dimensional ETF and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional ETF Trust and iShares MSCI India, you can compare the effects of market volatilities on Dimensional ETF 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 Dimensional ETF with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and IShares MSCI.
Diversification Opportunities for Dimensional ETF and IShares MSCI
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dimensional and IShares is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust and iShares MSCI India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI India and Dimensional ETF 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 Dimensional ETF Trust 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 India has no effect on the direction of Dimensional ETF i.e., Dimensional ETF and IShares MSCI go up and down completely randomly.
Pair Corralation between Dimensional ETF and IShares MSCI
Given the investment horizon of 90 days Dimensional ETF Trust is expected to generate 0.98 times more return on investment than IShares MSCI. However, Dimensional ETF Trust is 1.02 times less risky than IShares MSCI. It trades about 0.07 of its potential returns per unit of risk. iShares MSCI India is currently generating about 0.04 per unit of risk. If you would invest 3,667 in Dimensional ETF Trust on August 16, 2025 and sell it today you would earn a total of 102.00 from holding Dimensional ETF Trust or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional ETF Trust vs. iShares MSCI India
Performance |
| Timeline |
| Dimensional ETF Trust |
| iShares MSCI India |
Dimensional ETF and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and IShares MSCI
The main advantage of trading using opposite Dimensional ETF and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF 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.| Dimensional ETF vs. Dimensional Core Equity | Dimensional ETF vs. Avantis Equity ETF | Dimensional ETF vs. Vanguard Russell 1000 | Dimensional ETF vs. Avantis International Equity |
| IShares MSCI vs. iShares SP Mid Cap | IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. Invesco PureBeta MSCI | IShares MSCI vs. Vanguard International Dividend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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