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 China, 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
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xtrackers and KraneShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and KraneShares MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares MSCI China 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 China 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 expected to generate 1.09 times more return on investment than KraneShares MSCI. However, Xtrackers Harvest is 1.09 times more volatile than KraneShares MSCI China. It trades about 0.02 of its potential returns per unit of risk. KraneShares MSCI China is currently generating about 0.01 per unit of risk. If you would invest 2,738 in Xtrackers Harvest CSI on September 2, 2024 and sell it today you would earn a total of 182.00 from holding Xtrackers Harvest CSI or generate 6.65% 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 MSCI China
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| KraneShares MSCI China |
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. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. KraneShares Bosera MSCI |
| KraneShares MSCI vs. KraneShares MSCI All | KraneShares MSCI vs. Global X MSCI | KraneShares MSCI vs. WisdomTree China ex State Owned |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |