Correlation Between IShares Expanded and KraneShares
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and KraneShares 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 Expanded and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Expanded Tech Software and KraneShares, you can compare the effects of market volatilities on IShares Expanded and KraneShares 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 Expanded with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and KraneShares.
Diversification Opportunities for IShares Expanded and KraneShares
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and KraneShares is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech Software and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and IShares Expanded 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 Expanded Tech Software are associated (or correlated) with KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of IShares Expanded i.e., IShares Expanded and KraneShares go up and down completely randomly.
Pair Corralation between IShares Expanded and KraneShares
If you would invest 3,069 in KraneShares on October 20, 2024 and sell it today you would earn a total of 0.00 from holding KraneShares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
iShares Expanded Tech Software vs. KraneShares
Performance |
| Timeline |
| iShares Expanded Tech |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Expanded and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Expanded and KraneShares
The main advantage of trading using opposite IShares Expanded and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, KraneShares 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 will offset losses from the drop in KraneShares' long position.| IShares Expanded vs. First Trust Technology | IShares Expanded vs. Fidelity MSCI Information | IShares Expanded vs. First Trust Nasdaq | IShares Expanded vs. iShares Global Tech |
| KraneShares vs. iShares JP Morgan | KraneShares vs. First Trust Emerging | KraneShares vs. VanEck China Bond | KraneShares vs. WisdomTree Emerging Currency |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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