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 Singapore, 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
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KraneShares and IShares is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares 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 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 Singapore 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 2,189 in iShares MSCI Singapore on August 25, 2024 and sell it today you would earn a total of 85.00 from holding iShares MSCI Singapore or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
KraneShares vs. iShares MSCI Singapore
Performance |
| Timeline |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI Singapore |
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. iShares MSCI Singapore | KraneShares vs. iShares MSCI Taiwan | KraneShares vs. iShares MSCI Malaysia | KraneShares vs. iShares MSCI Australia |
| IShares MSCI vs. iShares MSCI Malaysia | IShares MSCI vs. iShares MSCI Hong | IShares MSCI vs. HUMANA INC | IShares MSCI vs. SCOR PK |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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