Correlation Between KraneShares MSCI and Loncar Cancer

Can any of the company-specific risk be diversified away by investing in both KraneShares MSCI and Loncar Cancer 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 Loncar Cancer 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 Loncar Cancer Immunotherapy, you can compare the effects of market volatilities on KraneShares MSCI and Loncar Cancer 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 Loncar Cancer. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares MSCI and Loncar Cancer.

Diversification Opportunities for KraneShares MSCI and Loncar Cancer

0.49

Correlation Coefficient

KraneShares MSCI  Loncar Cancer

Very weak diversification

The 3 months correlation between KraneShares and Loncar is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares MSCI All and Loncar Cancer Immunotherapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncar Cancer Immuno 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 Loncar Cancer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncar Cancer Immuno has no effect on the direction of KraneShares MSCI i.e., KraneShares MSCI and Loncar Cancer go up and down completely randomly.

Pair Corralation between KraneShares MSCI and Loncar Cancer

Given the investment horizon of 90 days KraneShares MSCI All is expected to generate 1.11 times more return on investment than Loncar Cancer. However, KraneShares MSCI is 1.11 times more volatile than Loncar Cancer Immunotherapy. It trades about -0.11 of its potential returns per unit of risk. Loncar Cancer Immunotherapy is currently generating about -0.3 per unit of risk. If you would invest  1,529  in KraneShares MSCI All on September 30, 2024 and sell it today you would lose (87.00) from holding KraneShares MSCI All or give up 5.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

KraneShares MSCI All  vs.  Loncar Cancer Immunotherapy

KraneShares MSCI All

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KraneShares MSCI All has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Loncar Cancer Immuno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loncar Cancer Immunotherapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Etf's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Pair Trading with KraneShares MSCI and Loncar Cancer

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

The idea behind KraneShares MSCI All and Loncar Cancer Immunotherapy 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.