Correlation Between IShares MSCI and AdvisorShares Hotel
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and AdvisorShares Hotel 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 AdvisorShares Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI China and AdvisorShares Hotel ETF, you can compare the effects of market volatilities on IShares MSCI and AdvisorShares Hotel 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 AdvisorShares Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and AdvisorShares Hotel.
Diversification Opportunities for IShares MSCI and AdvisorShares Hotel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IShares and AdvisorShares is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI China and AdvisorShares Hotel ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Hotel ETF 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 China are associated (or correlated) with AdvisorShares Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Hotel ETF has no effect on the direction of IShares MSCI i.e., IShares MSCI and AdvisorShares Hotel go up and down completely randomly.
Pair Corralation between IShares MSCI and AdvisorShares Hotel
Given the investment horizon of 90 days iShares MSCI China is expected to generate 1.06 times more return on investment than AdvisorShares Hotel. However, IShares MSCI is 1.06 times more volatile than AdvisorShares Hotel ETF. It trades about 0.03 of its potential returns per unit of risk. AdvisorShares Hotel ETF is currently generating about -0.06 per unit of risk. If you would invest 6,133 in iShares MSCI China on September 3, 2025 and sell it today you would earn a total of 133.00 from holding iShares MSCI China or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI China vs. AdvisorShares Hotel ETF
Performance |
| Timeline |
| iShares MSCI China |
| AdvisorShares Hotel ETF |
IShares MSCI and AdvisorShares Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and AdvisorShares Hotel
The main advantage of trading using opposite IShares MSCI and AdvisorShares Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, AdvisorShares Hotel 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 AdvisorShares Hotel will offset losses from the drop in AdvisorShares Hotel's long position.| IShares MSCI vs. Strategy Shares | IShares MSCI vs. Freedom Day Dividend | IShares MSCI vs. Franklin Templeton ETF | IShares MSCI vs. YieldMax Short NVDA |
| AdvisorShares Hotel vs. Strategy Shares | AdvisorShares Hotel vs. Freedom Day Dividend | AdvisorShares Hotel vs. Franklin Templeton ETF | AdvisorShares Hotel vs. iShares MSCI China |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |