Correlation Between KraneShares Artificial and KraneShares Trust
Can any of the company-specific risk be diversified away by investing in both KraneShares Artificial and KraneShares Trust 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 Artificial and KraneShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Artificial Intelligence and KraneShares Trust, you can compare the effects of market volatilities on KraneShares Artificial and KraneShares Trust 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 Artificial with a short position of KraneShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Artificial and KraneShares Trust.
Diversification Opportunities for KraneShares Artificial and KraneShares Trust
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KraneShares and KraneShares is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Artificial Intelli and KraneShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Trust and KraneShares Artificial 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 Artificial Intelligence are associated (or correlated) with KraneShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Trust has no effect on the direction of KraneShares Artificial i.e., KraneShares Artificial and KraneShares Trust go up and down completely randomly.
Pair Corralation between KraneShares Artificial and KraneShares Trust
Given the investment horizon of 90 days KraneShares Artificial Intelligence is expected to generate 0.95 times more return on investment than KraneShares Trust. However, KraneShares Artificial Intelligence is 1.05 times less risky than KraneShares Trust. It trades about 0.19 of its potential returns per unit of risk. KraneShares Trust is currently generating about -0.1 per unit of risk. If you would invest 2,647 in KraneShares Artificial Intelligence on August 31, 2024 and sell it today you would earn a total of 155.00 from holding KraneShares Artificial Intelligence or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KraneShares Artificial Intelli vs. KraneShares Trust
Performance |
| Timeline |
| KraneShares Artificial |
| KraneShares Trust |
KraneShares Artificial and KraneShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Artificial and KraneShares Trust
The main advantage of trading using opposite KraneShares Artificial and KraneShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Artificial position performs unexpectedly, KraneShares Trust 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 Trust will offset losses from the drop in KraneShares Trust's long position.| KraneShares Artificial vs. Nexalin Technology | KraneShares Artificial vs. Kilroy Realty Corp | KraneShares Artificial vs. Highwoods Properties | KraneShares Artificial vs. Karat Packaging |
| KraneShares Trust vs. KraneShares MSCI One | KraneShares Trust vs. KraneShares Bosera MSCI | KraneShares Trust vs. KraneShares Artificial Intelligence | KraneShares Trust vs. KraneShares MSCI All |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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