Correlation Between Global X and KraneShares Electric
Can any of the company-specific risk be diversified away by investing in both Global X and KraneShares Electric 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 Global X and KraneShares Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Autonomous and KraneShares Electric Vehicles, you can compare the effects of market volatilities on Global X and KraneShares Electric 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 Global X with a short position of KraneShares Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and KraneShares Electric.
Diversification Opportunities for Global X and KraneShares Electric
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and KraneShares is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Global X Autonomous and KraneShares Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Electric and Global X 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 Global X Autonomous are associated (or correlated) with KraneShares Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Electric has no effect on the direction of Global X i.e., Global X and KraneShares Electric go up and down completely randomly.
Pair Corralation between Global X and KraneShares Electric
Given the investment horizon of 90 days Global X Autonomous is expected to under-perform the KraneShares Electric. But the etf apears to be less risky and, when comparing its historical volatility, Global X Autonomous is 1.4 times less risky than KraneShares Electric. The etf trades about -0.01 of its potential returns per unit of risk. The KraneShares Electric Vehicles is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,119 in KraneShares Electric Vehicles on November 28, 2024 and sell it today you would earn a total of 103.00 from holding KraneShares Electric Vehicles or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Autonomous vs. KraneShares Electric Vehicles
Performance |
| Timeline |
| Global X Autonomous |
| KraneShares Electric |
Global X and KraneShares Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and KraneShares Electric
The main advantage of trading using opposite Global X and KraneShares Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, KraneShares Electric 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 Electric will offset losses from the drop in KraneShares Electric's long position.| Global X vs. iShares Self Driving EV | Global X vs. KraneShares Electric Vehicles | Global X vs. Global X Lithium | Global X vs. SPDR SP Kensho |
| KraneShares Electric vs. SPDR SP Kensho | KraneShares Electric vs. iShares Self Driving EV | KraneShares Electric vs. Amplify Lithium Battery | KraneShares Electric vs. Global X Autonomous |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |