Correlation Between IShares MSCI and Hartford Municipal

Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Hartford Municipal 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 Hartford Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares MSCI India and Hartford Municipal Opportunities, you can compare the effects of market volatilities on IShares MSCI and Hartford Municipal 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 Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Hartford Municipal.

Diversification Opportunities for IShares MSCI and Hartford Municipal

-0.52

Correlation Coefficient

IShares MSCI  Hartford Municipal

Excellent diversification

The 3 months correlation between IShares and Hartford is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI India and Hartford Municipal Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Municipal 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 India are associated (or correlated) with Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Municipal has no effect on the direction of IShares MSCI i.e., IShares MSCI and Hartford Municipal go up and down completely randomly.

Pair Corralation between IShares MSCI and Hartford Municipal

Given the investment horizon of 90 days iShares MSCI India is expected to generate 3.51 times more return on investment than Hartford Municipal. However, IShares MSCI is 3.51 times more volatile than Hartford Municipal Opportunities. It trades about 0.15 of its potential returns per unit of risk. Hartford Municipal Opportunities is currently generating about -0.08 per unit of risk. If you would invest  4,855  in iShares MSCI India on February 27, 2025 and sell it today you would earn a total of  598.00  from holding iShares MSCI India or generate 12.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

iShares MSCI India  vs.  Hartford Municipal Opportuniti

iShares MSCI India

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI India are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, IShares MSCI may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Hartford Municipal

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hartford Municipal Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Hartford Municipal is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with IShares MSCI and Hartford Municipal

The main advantage of trading using opposite IShares MSCI and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Hartford Municipal 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 Hartford Municipal will offset losses from the drop in Hartford Municipal's long position.

The idea behind iShares MSCI India and Hartford Municipal Opportunities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..