CAF vs KWEB: Correlation
How closely do Morgan Stanley China A Share Fund Inc. (CAF) and KraneShares CSI China Internet ETF (KWEB) 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 KWEB?
Over the past 3 years, CAF and KWEB moved with a correlation of 0.64, which is strong. The past 12 months show a weaker link (0.32) than the 3-year average (0.64). Over 5 years the correlation is 0.65, and the annualized covariance of weekly returns is 444.0 %².
In CAF's tracked universe of 14 assets, KWEB sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months CAF outperformed by 55.8 percentage points (+29.7% for CAF against -26.1% for KWEB). One caveat on sizing: KWEB is 1.7 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 KWEB: side by side
| CAF (Morgan Stanley China A Share Fund Inc.) | KWEB (KraneShares CSI China Internet ETF) | |
|---|---|---|
| 1-year return | +29.7% | -26.1% |
| 5-year return | +4.1% | -36.2% |
| Volatility (ann.) | 20.4% | 33.9% |
| Beta vs S&P 500 | 0.48 | 0.90 |
| Max drawdown (3Y) | -26.3% | -41.6% |
| Market cap | $0.3B | – |
| P/E (trailing) | 4.6 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Thematic |
Year-by-year returns
| Year | CAF | KWEB |
|---|---|---|
| 2022 | -30.4% | -17.2% |
| 2023 | -9.4% | -9.1% |
| 2024 | +0.3% | +12.0% |
| 2025 | +41.5% | +23.5% |
| 2026 | +9.7% | -23.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAF and KWEB good diversifiers for each other?
Only partially. A correlation of 0.64 means CAF and KWEB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CAF and KWEB?
Using weekly returns as of 2026-08-27: 0.64 over 3 years, with 0.32 over the last year and 0.65 over 5 years.
Is KWEB a good diversifier for CAF?
Only partially. A correlation of 0.64 means CAF and KWEB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
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-kweb.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/caf-vs-kweb/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAF correlations · KWEB correlations
