Correlation Between KraneShares and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both KraneShares 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 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 and iShares MSCI China, you can compare the effects of market volatilities on KraneShares 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 with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares and IShares MSCI.
Diversification Opportunities for KraneShares and IShares MSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares and iShares MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI China 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 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 China has no effect on the direction of KraneShares i.e., KraneShares and IShares MSCI go up and down completely randomly.
Pair Corralation between KraneShares and IShares MSCI
If you would invest 2,688 in iShares MSCI China on November 9, 2024 and sell it today you would earn a total of 60.00 from holding iShares MSCI China or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KraneShares vs. iShares MSCI China
Performance |
| Timeline |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| iShares MSCI China |
KraneShares and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares and IShares MSCI
The main advantage of trading using opposite KraneShares and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares 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 vs. KraneShares SSE STAR | KraneShares vs. KraneShares MSCI China | KraneShares vs. KraneShares MSCI All |
| IShares MSCI vs. iShares MSCI China | IShares MSCI vs. KraneShares Bosera MSCI | IShares MSCI vs. WisdomTree China ex State Owned | IShares MSCI vs. iShares MSCI China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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