Correlation Between IShares MSCI and KraneShares
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and KraneShares 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI India and KraneShares, you can compare the effects of market volatilities on IShares MSCI and KraneShares 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and KraneShares.
Diversification Opportunities for IShares MSCI and KraneShares
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and KraneShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI India and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 India are associated (or correlated) with KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of IShares MSCI i.e., IShares MSCI and KraneShares go up and down completely randomly.
Pair Corralation between IShares MSCI and KraneShares
If you would invest 5,381 in iShares MSCI India on September 13, 2024 and sell it today you would earn a total of 157.50 from holding iShares MSCI India or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
iShares MSCI India vs. KraneShares
Performance |
| Timeline |
| iShares MSCI India |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
IShares MSCI and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and KraneShares
The main advantage of trading using opposite IShares MSCI and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, KraneShares 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 will offset losses from the drop in KraneShares' long position.| IShares MSCI vs. iShares India 50 | IShares MSCI vs. iShares MSCI China | IShares MSCI vs. VanEck Vietnam ETF | IShares MSCI vs. WisdomTree India Earnings |
| KraneShares vs. KraneShares CSI China | KraneShares vs. Invesco China Technology | KraneShares vs. iShares MSCI India | KraneShares 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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