Correlation Between ETRACS Monthly and KraneShares
Can any of the company-specific risk be diversified away by investing in both ETRACS Monthly and KraneShares 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 ETRACS Monthly and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETRACS Monthly Pay and KraneShares, you can compare the effects of market volatilities on ETRACS Monthly and KraneShares 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 ETRACS Monthly with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETRACS Monthly and KraneShares.
Diversification Opportunities for ETRACS Monthly and KraneShares
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ETRACS and KraneShares is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ETRACS Monthly Pay and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and ETRACS Monthly 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 ETRACS Monthly Pay are associated (or correlated) with KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of ETRACS Monthly i.e., ETRACS Monthly and KraneShares go up and down completely randomly.
Pair Corralation between ETRACS Monthly and KraneShares
If you would invest 1,980 in ETRACS Monthly Pay on September 1, 2024 and sell it today you would earn a total of 80.00 from holding ETRACS Monthly Pay or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ETRACS Monthly Pay vs. KraneShares
Performance |
| Timeline |
| ETRACS Monthly Pay |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ETRACS Monthly and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETRACS Monthly and KraneShares
The main advantage of trading using opposite ETRACS Monthly and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETRACS Monthly position performs unexpectedly, KraneShares 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 will offset losses from the drop in KraneShares' long position.| ETRACS Monthly vs. ProShares VIX Mid Term | ETRACS Monthly vs. iPath Series B | ETRACS Monthly vs. ProShares Short Russell2000 |
| KraneShares vs. Xtrackers Harvest CSI | KraneShares vs. Aquagold International | KraneShares vs. Thrivent High Yield | KraneShares vs. Morningstar Unconstrained Allocation |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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