Correlation Between IShares and KraneShares Trust
Can any of the company-specific risk be diversified away by investing in both IShares 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 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 and KraneShares Trust , you can compare the effects of market volatilities on IShares 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 with a short position of KraneShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares and KraneShares Trust.
Diversification Opportunities for IShares and KraneShares Trust
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and KraneShares is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding IShares and KraneShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Trust and IShares 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 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 i.e., IShares and KraneShares Trust go up and down completely randomly.
Pair Corralation between IShares and KraneShares Trust
If you would invest 6,301 in IShares on August 26, 2024 and sell it today you would earn a total of 0.00 from holding IShares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
IShares vs. KraneShares Trust
Performance |
| Timeline |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KraneShares Trust |
IShares and KraneShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares and KraneShares Trust
The main advantage of trading using opposite IShares and KraneShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares 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 vs. Aquagold International | IShares vs. Morningstar Unconstrained Allocation | IShares vs. High Yield Municipal Fund | IShares vs. Thrivent High Yield |
| KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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