Correlation Between KraneShares MSCI and KraneShares MSCI
Can any of the company-specific risk be diversified away by investing in both KraneShares MSCI and KraneShares 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 MSCI and KraneShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares MSCI One and KraneShares MSCI All, you can compare the effects of market volatilities on KraneShares MSCI and KraneShares 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 MSCI with a short position of KraneShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares MSCI and KraneShares MSCI.
Diversification Opportunities for KraneShares MSCI and KraneShares MSCI
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KraneShares and KraneShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares MSCI One and KraneShares MSCI All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares MSCI All and KraneShares MSCI 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 MSCI One are associated (or correlated) with KraneShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares MSCI All has no effect on the direction of KraneShares MSCI i.e., KraneShares MSCI and KraneShares MSCI go up and down completely randomly.
Pair Corralation between KraneShares MSCI and KraneShares MSCI
Given the investment horizon of 90 days KraneShares MSCI is expected to generate 7.29 times less return on investment than KraneShares MSCI. But when comparing it to its historical volatility, KraneShares MSCI One is 1.86 times less risky than KraneShares MSCI. It trades about 0.01 of its potential returns per unit of risk. KraneShares MSCI All is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,939 in KraneShares MSCI All on August 29, 2024 and sell it today you would earn a total of 101.00 from holding KraneShares MSCI All or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KraneShares MSCI One vs. KraneShares MSCI All
Performance |
| Timeline |
| KraneShares MSCI One |
| KraneShares MSCI All |
KraneShares MSCI and KraneShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares MSCI and KraneShares MSCI
The main advantage of trading using opposite KraneShares MSCI and KraneShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares MSCI position performs unexpectedly, KraneShares 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 KraneShares MSCI will offset losses from the drop in KraneShares MSCI's long position.| KraneShares MSCI vs. iShares Dividend and | KraneShares MSCI vs. Martin Currie Sustainable | KraneShares MSCI vs. VictoryShares THB Mid | KraneShares MSCI vs. Mast Global Battery |
| KraneShares MSCI vs. iShares MSCI Singapore | KraneShares MSCI vs. iShares MSCI Malaysia | KraneShares MSCI vs. iShares MSCI Australia | KraneShares MSCI vs. iShares MSCI South |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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