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 South 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
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and KraneShares is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI South 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 South 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 South is expected to under-perform the KraneShares Bosera. But the etf apears to be less risky and, when comparing its historical volatility, iShares MSCI South is 1.44 times less risky than KraneShares Bosera. The etf trades about -0.17 of its potential returns per unit of risk. The KraneShares Bosera MSCI is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,508 in KraneShares Bosera MSCI on August 30, 2024 and sell it today you would lose (102.00) from holding KraneShares Bosera MSCI or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI South vs. KraneShares Bosera MSCI
Performance |
| Timeline |
| iShares MSCI South |
| 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 Taiwan | IShares MSCI vs. iShares MSCI Singapore | IShares MSCI vs. iShares MSCI Mexico | IShares MSCI vs. iShares MSCI Hong |
| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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