Correlation Between Xtrackers Harvest and KraneShares MSCI
Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and KraneShares 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 Xtrackers Harvest and KraneShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Harvest CSI and KraneShares MSCI All, you can compare the effects of market volatilities on Xtrackers Harvest and KraneShares 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 Xtrackers Harvest with a short position of KraneShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and KraneShares MSCI.
Diversification Opportunities for Xtrackers Harvest and KraneShares MSCI
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xtrackers and KraneShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and KraneShares MSCI All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares MSCI All and Xtrackers Harvest 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 Xtrackers Harvest CSI are associated (or correlated) with KraneShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares MSCI All has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and KraneShares MSCI go up and down completely randomly.
Pair Corralation between Xtrackers Harvest and KraneShares MSCI
Given the investment horizon of 90 days Xtrackers Harvest CSI is not expected to generate positive returns. Moreover, Xtrackers Harvest is 1.14 times more volatile than KraneShares MSCI All. It trades away all of its potential returns to assume current level of volatility. KraneShares MSCI All is currently generating about -0.06 per unit of risk. If you would invest 2,744 in Xtrackers Harvest CSI on September 1, 2024 and sell it today you would lose (16.00) from holding Xtrackers Harvest CSI or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xtrackers Harvest CSI vs. KraneShares MSCI All
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| KraneShares MSCI All |
Xtrackers Harvest and KraneShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Harvest and KraneShares MSCI
The main advantage of trading using opposite Xtrackers Harvest and KraneShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, KraneShares 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 KraneShares MSCI will offset losses from the drop in KraneShares MSCI's long position.| Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. KraneShares CSI China |
| KraneShares MSCI vs. Xtrackers Harvest CSI | KraneShares MSCI vs. Aquagold International | KraneShares MSCI vs. Thrivent High Yield | KraneShares MSCI vs. Morningstar Unconstrained Allocation |
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.
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