Correlation Between IShares Dividend and KraneShares Trust
Can any of the company-specific risk be diversified away by investing in both IShares Dividend 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 IShares Dividend and KraneShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Dividend and and KraneShares Trust, you can compare the effects of market volatilities on IShares Dividend 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 IShares Dividend with a short position of KraneShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Dividend and KraneShares Trust.
Diversification Opportunities for IShares Dividend and KraneShares Trust
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and KraneShares is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding iShares Dividend and and KraneShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Trust and IShares Dividend 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 iShares Dividend and 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 IShares Dividend i.e., IShares Dividend and KraneShares Trust go up and down completely randomly.
Pair Corralation between IShares Dividend and KraneShares Trust
Given the investment horizon of 90 days iShares Dividend and is expected to generate 1.64 times more return on investment than KraneShares Trust. However, IShares Dividend is 1.64 times more volatile than KraneShares Trust. It trades about 0.09 of its potential returns per unit of risk. KraneShares Trust is currently generating about 0.13 per unit of risk. If you would invest 3,568 in iShares Dividend and on November 19, 2024 and sell it today you would earn a total of 1,433 from holding iShares Dividend and or generate 40.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.81% |
| Values | Daily Returns |
iShares Dividend and vs. KraneShares Trust
Performance |
| Timeline |
| iShares Dividend |
| KraneShares Trust |
IShares Dividend and KraneShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Dividend and KraneShares Trust
The main advantage of trading using opposite IShares Dividend and KraneShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Dividend 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.| IShares Dividend vs. iShares ESG Aware | IShares Dividend vs. Pacer Cash Cows | IShares Dividend vs. iShares MSCI USA | IShares Dividend vs. Invesco KBW Premium |
| KraneShares Trust vs. iShares Dividend and | KraneShares Trust vs. Martin Currie Sustainable | KraneShares Trust vs. VictoryShares THB Mid | KraneShares Trust vs. Mast Global Battery |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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