Correlation Between KraneShares Bosera and KraneShares Emerging
Can any of the company-specific risk be diversified away by investing in both KraneShares Bosera and KraneShares Emerging 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 KraneShares Emerging 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 KraneShares Emerging Markets, you can compare the effects of market volatilities on KraneShares Bosera and KraneShares Emerging 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 KraneShares Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Bosera and KraneShares Emerging.
Diversification Opportunities for KraneShares Bosera and KraneShares Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KraneShares and KraneShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Bosera MSCI and KraneShares Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Emerging 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 KraneShares Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Emerging has no effect on the direction of KraneShares Bosera i.e., KraneShares Bosera and KraneShares Emerging go up and down completely randomly.
Pair Corralation between KraneShares Bosera and KraneShares Emerging
Considering the 90-day investment horizon KraneShares Bosera MSCI is expected to under-perform the KraneShares Emerging. But the etf apears to be less risky and, when comparing its historical volatility, KraneShares Bosera MSCI is 1.05 times less risky than KraneShares Emerging. The etf trades about -0.08 of its potential returns per unit of risk. The KraneShares Emerging Markets is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,708 in KraneShares Emerging Markets on October 23, 2024 and sell it today you would earn a total of 3.33 from holding KraneShares Emerging Markets or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KraneShares Bosera MSCI vs. KraneShares Emerging Markets
Performance |
| Timeline |
| KraneShares Bosera MSCI |
| KraneShares Emerging |
KraneShares Bosera and KraneShares Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Bosera and KraneShares Emerging
The main advantage of trading using opposite KraneShares Bosera and KraneShares Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Bosera position performs unexpectedly, KraneShares Emerging 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 Emerging will offset losses from the drop in KraneShares Emerging's long position.| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
| KraneShares Emerging vs. KraneShares Bosera MSCI | KraneShares Emerging vs. KraneShares MSCI One | KraneShares Emerging vs. Cambria Value and | KraneShares Emerging vs. KraneShares MSCI All |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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