Correlation Between IShares Trust and KraneShares
Can any of the company-specific risk be diversified away by investing in both IShares Trust 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 Trust and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and KraneShares, you can compare the effects of market volatilities on IShares Trust 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 Trust with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and KraneShares.
Diversification Opportunities for IShares Trust and KraneShares
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and KraneShares is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and IShares Trust 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 Trust 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 Trust i.e., IShares Trust and KraneShares go up and down completely randomly.
Pair Corralation between IShares Trust and KraneShares
If you would invest 3,082 in iShares Trust on September 4, 2024 and sell it today you would earn a total of 108.00 from holding iShares Trust or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
iShares Trust vs. KraneShares
Performance |
| Timeline |
| iShares Trust |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
IShares Trust and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and KraneShares
The main advantage of trading using opposite IShares Trust and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust 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 Trust vs. First Trust Multi Asset | IShares Trust vs. Collaborative Investment Series | IShares Trust vs. EA Series Trust | IShares Trust vs. Ocean Park International |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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