Correlation Between Xtrackers Harvest and KraneShares Bosera
Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and KraneShares Bosera 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 Bosera 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 Bosera MSCI, you can compare the effects of market volatilities on Xtrackers Harvest and KraneShares Bosera 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 Bosera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and KraneShares Bosera.
Diversification Opportunities for Xtrackers Harvest and KraneShares Bosera
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Xtrackers and KraneShares is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and KraneShares Bosera MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Bosera MSCI 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 Bosera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Bosera MSCI has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and KraneShares Bosera go up and down completely randomly.
Pair Corralation between Xtrackers Harvest and KraneShares Bosera
Given the investment horizon of 90 days Xtrackers Harvest is expected to generate 1.19 times less return on investment than KraneShares Bosera. In addition to that, Xtrackers Harvest is 1.09 times more volatile than KraneShares Bosera MSCI. It trades about 0.03 of its total potential returns per unit of risk. KraneShares Bosera MSCI is currently generating about 0.04 per unit of volatility. If you would invest 2,077 in KraneShares Bosera MSCI on August 27, 2024 and sell it today you would earn a total of 294.00 from holding KraneShares Bosera MSCI or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Harvest CSI vs. KraneShares Bosera MSCI
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| KraneShares Bosera MSCI |
Xtrackers Harvest and KraneShares Bosera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Harvest and KraneShares Bosera
The main advantage of trading using opposite Xtrackers Harvest and KraneShares Bosera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, KraneShares Bosera 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 Bosera will offset losses from the drop in KraneShares Bosera's long position.| Xtrackers Harvest vs. iShares MSCI Singapore | Xtrackers Harvest vs. iShares MSCI Malaysia | Xtrackers Harvest vs. iShares MSCI Australia | Xtrackers Harvest vs. iShares MSCI South |
| KraneShares Bosera vs. iShares MSCI Singapore | KraneShares Bosera vs. iShares MSCI Malaysia | KraneShares Bosera vs. iShares MSCI Australia | KraneShares Bosera vs. iShares MSCI South |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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