Correlation Between CHIH and KraneShares SSE
Can any of the company-specific risk be diversified away by investing in both CHIH and KraneShares SSE 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 CHIH and KraneShares SSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIH and KraneShares SSE STAR, you can compare the effects of market volatilities on CHIH and KraneShares SSE 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 CHIH with a short position of KraneShares SSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIH and KraneShares SSE.
Diversification Opportunities for CHIH and KraneShares SSE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHIH and KraneShares is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding CHIH and KraneShares SSE STAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares SSE STAR and CHIH 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 CHIH are associated (or correlated) with KraneShares SSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares SSE STAR has no effect on the direction of CHIH i.e., CHIH and KraneShares SSE go up and down completely randomly.
Pair Corralation between CHIH and KraneShares SSE
If you would invest 1,460 in CHIH on August 28, 2024 and sell it today you would earn a total of 0.00 from holding CHIH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CHIH vs. KraneShares SSE STAR
Performance |
| Timeline |
| CHIH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KraneShares SSE STAR |
CHIH and KraneShares SSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIH and KraneShares SSE
The main advantage of trading using opposite CHIH and KraneShares SSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIH position performs unexpectedly, KraneShares SSE 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 SSE will offset losses from the drop in KraneShares SSE's long position.| CHIH vs. iShares MSCI Singapore | CHIH vs. iShares MSCI Malaysia | CHIH vs. iShares MSCI Australia | CHIH vs. iShares MSCI South |
| KraneShares SSE vs. iShares MSCI Singapore | KraneShares SSE vs. iShares MSCI Malaysia | KraneShares SSE vs. iShares MSCI Australia | KraneShares SSE vs. iShares MSCI South |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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