CAF vs FXI: Correlation
How closely do Morgan Stanley China A Share Fund Inc. (CAF) and iShares China Large-Cap ETF (FXI) trade together? Their weekly returns over three years give a correlation of 0.64, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAF and FXI?
Over the past 3 years, CAF and FXI moved with a correlation of 0.64, which is strong. The past 12 months show a weaker link (0.22) than the 3-year average (0.64). Over 5 years the correlation is 0.69, and the annualized covariance of weekly returns is 328.7 %².
In CAF's tracked universe of 14 assets, FXI sits right near the top at #2. Their recent paths diverged sharply: over the last 12 months CAF outperformed by 35.8 percentage points (+29.7% for CAF against -6.1% for FXI).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CAF vs FXI: side by side
| CAF (Morgan Stanley China A Share Fund Inc.) | FXI (iShares China Large-Cap ETF) | |
|---|---|---|
| 1-year return | +29.7% | -6.1% |
| 5-year return | +4.1% | -1.4% |
| Volatility (ann.) | 20.4% | 25.3% |
| Beta vs S&P 500 | 0.48 | 0.68 |
| Max drawdown (3Y) | -26.3% | -23.2% |
| Market cap | $0.3B | – |
| P/E (trailing) | 4.6 | – |
| Dividend yield | 0.00% | 1.87% |
| Expense ratio | – | 0.73% |
| Assets under management | – | $4.3B |
| Sector / category | US Listed | ETF · International |
FXI, iShares's Greater China Region fund, carries $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield.
Year-by-year returns
| Year | CAF | FXI |
|---|---|---|
| 2022 | -30.4% | -20.7% |
| 2023 | -9.4% | -12.4% |
| 2024 | +0.3% | +29.0% |
| 2025 | +41.5% | +28.9% |
| 2026 | +9.7% | -7.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAF and FXI good diversifiers for each other?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAF and FXI?
As of 2026-08-27, the correlation of weekly returns between CAF and FXI is 0.64 over 3 years, 0.22 over 1 year and 0.69 over 5 years.
Is FXI a good diversifier for CAF?
Somewhat, no more. With 0.64 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.64 mean?
A reading of 0.64 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/caf-vs-fxi.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/caf-vs-fxi/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: CAF correlations · FXI correlations
