Correlation Between KraneShares MSCI and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both KraneShares MSCI and Exchange Traded 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 Exchange Traded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares MSCI All and Exchange Traded Concepts, you can compare the effects of market volatilities on KraneShares MSCI and Exchange Traded 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 Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares MSCI and Exchange Traded.
Diversification Opportunities for KraneShares MSCI and Exchange Traded
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KraneShares and Exchange is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares MSCI All and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 All are associated (or correlated) with Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of KraneShares MSCI i.e., KraneShares MSCI and Exchange Traded go up and down completely randomly.
Pair Corralation between KraneShares MSCI and Exchange Traded
If you would invest 1,435 in KraneShares MSCI All on September 25, 2024 and sell it today you would earn a total of 8.00 from holding KraneShares MSCI All or generate 0.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
KraneShares MSCI All vs. Exchange Traded Concepts
Performance |
Timeline |
KraneShares MSCI All |
Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares MSCI and Exchange Traded Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KraneShares MSCI and Exchange Traded
The main advantage of trading using opposite KraneShares MSCI and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares MSCI position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.KraneShares MSCI vs. Invesco Golden Dragon | KraneShares MSCI vs. iShares MSCI China | KraneShares MSCI vs. iShares China Large Cap | KraneShares MSCI vs. SPDR SP Emerging |
Exchange Traded vs. Invesco Golden Dragon | Exchange Traded vs. iShares MSCI China | Exchange Traded vs. iShares China Large Cap | Exchange Traded vs. SPDR SP 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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