Correlation Between IShares MSCI and KraneShares Bosera
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 IShares MSCI and KraneShares Bosera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Singapore and KraneShares Bosera MSCI, you can compare the effects of market volatilities on IShares MSCI 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 IShares MSCI with a short position of KraneShares Bosera. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and KraneShares Bosera.
Diversification Opportunities for IShares MSCI and KraneShares Bosera
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and KraneShares is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Singapore 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 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 Singapore 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 IShares MSCI i.e., IShares MSCI and KraneShares Bosera go up and down completely randomly.
Pair Corralation between IShares MSCI and KraneShares Bosera
Considering the 90-day investment horizon iShares MSCI Singapore is expected to generate 0.51 times more return on investment than KraneShares Bosera. However, iShares MSCI Singapore is 1.95 times less risky than KraneShares Bosera. It trades about 0.13 of its potential returns per unit of risk. KraneShares Bosera MSCI is currently generating about 0.04 per unit of risk. If you would invest 1,713 in iShares MSCI Singapore on August 26, 2024 and sell it today you would earn a total of 561.00 from holding iShares MSCI Singapore or generate 32.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Singapore vs. KraneShares Bosera MSCI
Performance |
| Timeline |
| iShares MSCI Singapore |
| KraneShares Bosera MSCI |
IShares MSCI and KraneShares Bosera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and KraneShares Bosera
The main advantage of trading using opposite IShares MSCI and KraneShares Bosera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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.| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Taiwan |
| KraneShares Bosera vs. iShares MSCI Singapore | KraneShares Bosera vs. iShares MSCI Taiwan | KraneShares Bosera vs. iShares MSCI Malaysia | KraneShares Bosera vs. iShares MSCI Australia |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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