Correlation Between SmartETFs Dividend and KraneShares MSCI
Can any of the company-specific risk be diversified away by investing in both SmartETFs Dividend and KraneShares MSCI 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 SmartETFs Dividend and KraneShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartETFs Dividend Builder and KraneShares MSCI One, you can compare the effects of market volatilities on SmartETFs Dividend and KraneShares MSCI 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 SmartETFs Dividend with a short position of KraneShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartETFs Dividend and KraneShares MSCI.
Diversification Opportunities for SmartETFs Dividend and KraneShares MSCI
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SmartETFs and KraneShares is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SmartETFs Dividend Builder and KraneShares MSCI One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares MSCI One and SmartETFs 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 SmartETFs Dividend Builder are associated (or correlated) with KraneShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares MSCI One has no effect on the direction of SmartETFs Dividend i.e., SmartETFs Dividend and KraneShares MSCI go up and down completely randomly.
Pair Corralation between SmartETFs Dividend and KraneShares MSCI
Given the investment horizon of 90 days SmartETFs Dividend Builder is expected to generate 0.55 times more return on investment than KraneShares MSCI. However, SmartETFs Dividend Builder is 1.82 times less risky than KraneShares MSCI. It trades about 0.09 of its potential returns per unit of risk. KraneShares MSCI One is currently generating about 0.0 per unit of risk. If you would invest 2,274 in SmartETFs Dividend Builder on September 3, 2024 and sell it today you would earn a total of 713.00 from holding SmartETFs Dividend Builder or generate 31.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
SmartETFs Dividend Builder vs. KraneShares MSCI One
Performance |
| Timeline |
| SmartETFs Dividend |
| KraneShares MSCI One |
SmartETFs Dividend and KraneShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartETFs Dividend and KraneShares MSCI
The main advantage of trading using opposite SmartETFs Dividend and KraneShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartETFs Dividend position performs unexpectedly, KraneShares MSCI 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 MSCI will offset losses from the drop in KraneShares MSCI's long position.| SmartETFs Dividend vs. SmartETFs Asia Pacific | SmartETFs Dividend vs. Listed Funds Trust | SmartETFs Dividend vs. iShares AsiaPacific Dividend | SmartETFs Dividend vs. ProShares MSCI Emerging |
| KraneShares MSCI vs. iShares Dividend and | KraneShares MSCI vs. Martin Currie Sustainable | KraneShares MSCI vs. VictoryShares THB Mid | KraneShares MSCI 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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