Correlation Between VIIX and KraneShares MSCI
Can any of the company-specific risk be diversified away by investing in both VIIX 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 VIIX and KraneShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIIX and KraneShares MSCI All, you can compare the effects of market volatilities on VIIX 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 VIIX with a short position of KraneShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIIX and KraneShares MSCI.
Diversification Opportunities for VIIX and KraneShares MSCI
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VIIX and KraneShares is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding VIIX 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 VIIX 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 VIIX 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 VIIX i.e., VIIX and KraneShares MSCI go up and down completely randomly.
Pair Corralation between VIIX and KraneShares MSCI
If you would invest 315.00 in VIIX on September 3, 2024 and sell it today you would earn a total of 0.00 from holding VIIX or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
VIIX vs. KraneShares MSCI All
Performance |
| Timeline |
| VIIX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KraneShares MSCI All |
VIIX and KraneShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIIX and KraneShares MSCI
The main advantage of trading using opposite VIIX and KraneShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIIX 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.| VIIX vs. FT Vest Equity | VIIX vs. Zillow Group Class | VIIX vs. Northern Lights | VIIX vs. VanEck Vectors Moodys |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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