Correlation Between IShares Self and KraneShares Electric
Can any of the company-specific risk be diversified away by investing in both IShares Self 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 IShares Self and KraneShares Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Self Driving EV and KraneShares Electric Vehicles, you can compare the effects of market volatilities on IShares Self 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 IShares Self with a short position of KraneShares Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Self and KraneShares Electric.
Diversification Opportunities for IShares Self and KraneShares Electric
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and KraneShares is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding iShares Self Driving EV and KraneShares Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Electric and IShares Self 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 Self Driving EV 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 IShares Self i.e., IShares Self and KraneShares Electric go up and down completely randomly.
Pair Corralation between IShares Self and KraneShares Electric
Given the investment horizon of 90 days iShares Self Driving EV is expected to generate 0.95 times more return on investment than KraneShares Electric. However, iShares Self Driving EV is 1.06 times less risky than KraneShares Electric. It trades about 0.17 of its potential returns per unit of risk. KraneShares Electric Vehicles is currently generating about 0.12 per unit of risk. If you would invest 2,902 in iShares Self Driving EV on November 3, 2024 and sell it today you would earn a total of 128.00 from holding iShares Self Driving EV or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Self Driving EV vs. KraneShares Electric Vehicles
Performance |
| Timeline |
| iShares Self Driving |
| KraneShares Electric |
IShares Self and KraneShares Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Self and KraneShares Electric
The main advantage of trading using opposite IShares Self and KraneShares Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Self 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.| IShares Self vs. SPDR SP Kensho | IShares Self vs. KraneShares Electric Vehicles | IShares Self vs. Global X Autonomous | IShares Self vs. Amplify Lithium Battery |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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