Correlation Between CHIX and KraneShares Bosera

Can any of the company-specific risk be diversified away by investing in both CHIX and KraneShares Bosera 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 CHIX and KraneShares Bosera into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CHIX and KraneShares Bosera MSCI, you can compare the effects of market volatilities on CHIX and KraneShares Bosera 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 CHIX with a short position of KraneShares Bosera. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIX and KraneShares Bosera.

Diversification Opportunities for CHIX and KraneShares Bosera

0.0

Correlation Coefficient

CHIX  KraneShares Bosera

Pay attention - limited upside

The 3 months correlation between CHIX and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHIX and KraneShares Bosera MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Bosera MSCI and CHIX 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 CHIX are associated (or correlated) with KraneShares Bosera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Bosera MSCI has no effect on the direction of CHIX i.e., CHIX and KraneShares Bosera go up and down completely randomly.

Pair Corralation between CHIX and KraneShares Bosera

If you would invest  2,350  in KraneShares Bosera MSCI on December 23, 2024 and sell it today you would earn a total of  28.00  from holding KraneShares Bosera MSCI or generate 1.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CHIX  vs.  KraneShares Bosera MSCI

CHIX

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHIX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, CHIX is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

KraneShares Bosera MSCI

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KraneShares Bosera MSCI are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, KraneShares Bosera is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CHIX and KraneShares Bosera

The main advantage of trading using opposite CHIX and KraneShares Bosera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIX position performs unexpectedly, KraneShares Bosera 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 Bosera will offset losses from the drop in KraneShares Bosera's long position.

The idea behind CHIX and KraneShares Bosera MSCI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.