Correlation Between KraneShares Electric and Simplify Volt
Can any of the company-specific risk be diversified away by investing in both KraneShares Electric and Simplify Volt 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 KraneShares Electric and Simplify Volt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Electric Vehicles and Simplify Volt RoboCar, you can compare the effects of market volatilities on KraneShares Electric and Simplify Volt 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 KraneShares Electric with a short position of Simplify Volt. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Electric and Simplify Volt.
Diversification Opportunities for KraneShares Electric and Simplify Volt
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KraneShares and Simplify is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Electric Vehicles and Simplify Volt RoboCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Volt RoboCar and KraneShares Electric 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 KraneShares Electric Vehicles are associated (or correlated) with Simplify Volt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Volt RoboCar has no effect on the direction of KraneShares Electric i.e., KraneShares Electric and Simplify Volt go up and down completely randomly.
Pair Corralation between KraneShares Electric and Simplify Volt
Given the investment horizon of 90 days KraneShares Electric Vehicles is expected to under-perform the Simplify Volt. But the etf apears to be less risky and, when comparing its historical volatility, KraneShares Electric Vehicles is 3.04 times less risky than Simplify Volt. The etf trades about -0.02 of its potential returns per unit of risk. The Simplify Volt RoboCar is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,118 in Simplify Volt RoboCar on August 30, 2024 and sell it today you would earn a total of 605.00 from holding Simplify Volt RoboCar or generate 54.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KraneShares Electric Vehicles vs. Simplify Volt RoboCar
Performance |
| Timeline |
| KraneShares Electric |
| Simplify Volt RoboCar |
KraneShares Electric and Simplify Volt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Electric and Simplify Volt
The main advantage of trading using opposite KraneShares Electric and Simplify Volt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Electric position performs unexpectedly, Simplify Volt 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 Simplify Volt will offset losses from the drop in Simplify Volt's long position.| 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 |
| Simplify Volt vs. iShares MSCI USA | Simplify Volt vs. iShares MSCI USA | Simplify Volt vs. iShares MSCI USA | Simplify Volt vs. iShares Expanded Tech Software |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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