Correlation Between KraneShares and IShares Core
Can any of the company-specific risk be diversified away by investing in both KraneShares and IShares Core 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 and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares and iShares Core MSCI, you can compare the effects of market volatilities on KraneShares and IShares Core 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 with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares and IShares Core.
Diversification Opportunities for KraneShares and IShares Core
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and IShares is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI and KraneShares 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 are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of KraneShares i.e., KraneShares and IShares Core go up and down completely randomly.
Pair Corralation between KraneShares and IShares Core
If you would invest 6,287 in iShares Core MSCI on August 27, 2024 and sell it today you would earn a total of 36.00 from holding iShares Core MSCI or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
KraneShares vs. iShares Core MSCI
Performance |
| Timeline |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core MSCI |
KraneShares and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares and IShares Core
The main advantage of trading using opposite KraneShares and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| KraneShares vs. Technology Select Sector | KraneShares vs. YieldMax MSTR Option | KraneShares vs. Valkyrie Bitcoin Strategy | KraneShares vs. Global X Cybersecurity |
| IShares Core vs. iShares Core MSCI | IShares Core vs. iShares Core International | IShares Core vs. iShares Core 10 | IShares Core vs. iShares MSCI Emerging |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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