Correlation Between KraneShares Bosera and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both KraneShares Bosera and IShares 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 KraneShares Bosera and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Bosera MSCI and iShares MSCI Singapore, you can compare the effects of market volatilities on KraneShares Bosera and IShares 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 KraneShares Bosera with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Bosera and IShares MSCI.
Diversification Opportunities for KraneShares Bosera and IShares MSCI
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KraneShares and IShares is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Bosera MSCI and iShares MSCI Singapore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Singapore and KraneShares Bosera 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 KraneShares Bosera MSCI are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Singapore has no effect on the direction of KraneShares Bosera i.e., KraneShares Bosera and IShares MSCI go up and down completely randomly.
Pair Corralation between KraneShares Bosera and IShares MSCI
Considering the 90-day investment horizon KraneShares Bosera is expected to generate 1.37 times less return on investment than IShares MSCI. In addition to that, KraneShares Bosera is 2.39 times more volatile than iShares MSCI Singapore. It trades about 0.04 of its total potential returns per unit of risk. iShares MSCI Singapore is currently generating about 0.14 per unit of volatility. If you would invest 1,930 in iShares MSCI Singapore on August 30, 2024 and sell it today you would earn a total of 325.00 from holding iShares MSCI Singapore or generate 16.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KraneShares Bosera MSCI vs. iShares MSCI Singapore
Performance |
| Timeline |
| KraneShares Bosera MSCI |
| iShares MSCI Singapore |
KraneShares Bosera and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Bosera and IShares MSCI
The main advantage of trading using opposite KraneShares Bosera and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Bosera position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. iShares MSCI Australia | IShares MSCI vs. iShares MSCI Taiwan |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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