Correlation Between SonicShares Global and KraneShares Global
Can any of the company-specific risk be diversified away by investing in both SonicShares Global and KraneShares Global 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 SonicShares Global and KraneShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SonicShares Global Shipping and KraneShares Global Carbon, you can compare the effects of market volatilities on SonicShares Global and KraneShares Global 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 SonicShares Global with a short position of KraneShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SonicShares Global and KraneShares Global.
Diversification Opportunities for SonicShares Global and KraneShares Global
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SonicShares and KraneShares is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SonicShares Global Shipping and KraneShares Global Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Global Carbon and SonicShares Global 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 SonicShares Global Shipping are associated (or correlated) with KraneShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Global Carbon has no effect on the direction of SonicShares Global i.e., SonicShares Global and KraneShares Global go up and down completely randomly.
Pair Corralation between SonicShares Global and KraneShares Global
Given the investment horizon of 90 days SonicShares Global Shipping is expected to generate 0.65 times more return on investment than KraneShares Global. However, SonicShares Global Shipping is 1.55 times less risky than KraneShares Global. It trades about 0.11 of its potential returns per unit of risk. KraneShares Global Carbon is currently generating about -0.08 per unit of risk. If you would invest 2,705 in SonicShares Global Shipping on November 27, 2024 and sell it today you would earn a total of 63.00 from holding SonicShares Global Shipping or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SonicShares Global Shipping vs. KraneShares Global Carbon
Performance |
| Timeline |
| SonicShares Global |
| KraneShares Global Carbon |
SonicShares Global and KraneShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SonicShares Global and KraneShares Global
The main advantage of trading using opposite SonicShares Global and KraneShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SonicShares Global position performs unexpectedly, KraneShares Global 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 Global will offset losses from the drop in KraneShares Global's long position.| SonicShares Global vs. Breakwave Dry Bulk | SonicShares Global vs. US Global Sea | SonicShares Global vs. Defiance Hotel Airline | SonicShares Global vs. First Trust Nasdaq |
| KraneShares Global vs. United States Brent | KraneShares Global vs. ProShares K 1 Free | KraneShares Global vs. Invesco DB Energy | KraneShares Global vs. Invesco DB Oil |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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