Correlation Between IShares MSCI and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Xtrackers Harvest 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 Xtrackers Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI USA and Xtrackers Harvest CSI, you can compare the effects of market volatilities on IShares MSCI and Xtrackers Harvest 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 Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Xtrackers Harvest.
Diversification Opportunities for IShares MSCI and Xtrackers Harvest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Xtrackers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI USA and Xtrackers Harvest CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI 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 USA are associated (or correlated) with Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI has no effect on the direction of IShares MSCI i.e., IShares MSCI and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between IShares MSCI and Xtrackers Harvest
Given the investment horizon of 90 days iShares MSCI USA is expected to generate 0.98 times more return on investment than Xtrackers Harvest. However, iShares MSCI USA is 1.02 times less risky than Xtrackers Harvest. It trades about 0.06 of its potential returns per unit of risk. Xtrackers Harvest CSI is currently generating about 0.04 per unit of risk. If you would invest 7,253 in iShares MSCI USA on August 31, 2025 and sell it today you would earn a total of 279.00 from holding iShares MSCI USA or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI USA vs. Xtrackers Harvest CSI
Performance |
| Timeline |
| iShares MSCI USA |
| Xtrackers Harvest CSI |
IShares MSCI and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Xtrackers Harvest
The main advantage of trading using opposite IShares MSCI and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Xtrackers Harvest 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 Xtrackers Harvest will offset losses from the drop in Xtrackers Harvest's long position.| IShares MSCI vs. FT Vest Equity | IShares MSCI vs. Northern Lights | IShares MSCI vs. Diamond Hill Funds | IShares MSCI vs. Dimensional International High |
| Xtrackers Harvest vs. Strategy Shares | Xtrackers Harvest vs. Freedom Day Dividend | Xtrackers Harvest vs. Franklin Templeton ETF | Xtrackers Harvest 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |