Correlation Between KraneShares Bosera and CHIK
Can any of the company-specific risk be diversified away by investing in both KraneShares Bosera and CHIK 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 Bosera and CHIK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Bosera MSCI and CHIK, you can compare the effects of market volatilities on KraneShares Bosera and CHIK 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 Bosera with a short position of CHIK. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Bosera and CHIK.
Diversification Opportunities for KraneShares Bosera and CHIK
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KraneShares and CHIK is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Bosera MSCI and CHIK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIK and KraneShares Bosera 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 Bosera MSCI are associated (or correlated) with CHIK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIK has no effect on the direction of KraneShares Bosera i.e., KraneShares Bosera and CHIK go up and down completely randomly.
Pair Corralation between KraneShares Bosera and CHIK
If you would invest 2,269 in KraneShares Bosera MSCI on September 3, 2024 and sell it today you would earn a total of 135.00 from holding KraneShares Bosera MSCI or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
KraneShares Bosera MSCI vs. CHIK
Performance |
| Timeline |
| KraneShares Bosera MSCI |
| CHIK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares Bosera and CHIK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Bosera and CHIK
The main advantage of trading using opposite KraneShares Bosera and CHIK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Bosera position performs unexpectedly, CHIK 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 CHIK will offset losses from the drop in CHIK's long position.| KraneShares Bosera vs. Franklin FTSE South | KraneShares Bosera vs. Franklin FTSE Japan | KraneShares Bosera vs. Franklin FTSE India | KraneShares Bosera vs. Franklin FTSE Brazil |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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