Correlation Between IShares MSCI and RBC Short

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How much single-name risk can be diversified by combining iShares MSCI Canada and RBC Short Term? The view summarizes correlation to explain the diversifiable risk of holding iShares MSCI Canada and RBC Short Term together.
This correlation view highlights where iShares MSCI Canada and RBC Short Term move in sync and where they separate across market regimes. You can also test a long IShares MSCI and short RBC Short structure to evaluate relative-value behavior. Review volatility patterns in IShares MSCI and RBC Short. Go to your portfolio center

Diversification Opportunities for IShares MSCI and RBC Short

0.06
  Correlation Coefficient
Significant diversification
The 3 months correlation between IShares and RBC is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Canada and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term 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 Canada are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of IShares MSCI i.e., IShares MSCI and RBC Short go up and down completely randomly.

Pair Corralation between IShares MSCI and RBC Short

Assuming the 90-day trading horizon iShares MSCI Canada is expected to generate 1.02 times more return on investment than RBC Short. However, IShares MSCI is 1.02 times more volatile than RBC Short Term. It trades about 0.15 of its potential returns per unit of risk. RBC Short Term is currently generating about 0.0 per unit of risk. If you had invested C$ 5,415 in iShares MSCI Canada on December 17, 2025 and sold it today you would have earned a total of C$ 285.00 from holding iShares MSCI Canada or generated 5.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

iShares MSCI Canada  vs.  RBC Short Term

 Performance 
       Timeline  
iShares MSCI Canada 
Risk-Adjusted Performance
Balanced
 
Weak
 
Strong
iShares MSCI Canada currently ranks below 11% of comparable global equities and portfolios when recent risk-adjusted returns are measured across a 90-day horizon. Current market capitalization is about 170,603. In spite of very healthy basic indicators, IShares MSCI is not utilizing all of its potential. The recent price disarray may contribute to short-term losses for investors. ...more
RBC Short Term 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
RBC Short Term has delivered negative risk-adjusted returns across the last 90 days, suggesting that volatility was not compensated by return. Market capitalization should still be reviewed beside liquidity, leverage, and earnings quality. In spite of very healthy basic indicators, RBC Short is not utilizing all of its potential. The recent price disarray may contribute to short-term losses for investors. ...more

IShares MSCI and RBC Short Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares MSCI and RBC Short

Two-leg strategies using IShares MSCI and RBC Short matter because the combined position can be designed to be more market-neutral. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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