Correlation Between KraneShares Bosera and KraneShares
Can any of the company-specific risk be diversified away by investing in both KraneShares Bosera 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 KraneShares Bosera and KraneShares 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 KraneShares, you can compare the effects of market volatilities on KraneShares Bosera 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 KraneShares Bosera with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Bosera and KraneShares.
Diversification Opportunities for KraneShares Bosera and KraneShares
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KraneShares and KraneShares is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Bosera MSCI and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 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 KraneShares Bosera i.e., KraneShares Bosera and KraneShares go up and down completely randomly.
Pair Corralation between KraneShares Bosera and KraneShares
Considering the 90-day investment horizon KraneShares Bosera MSCI is expected to generate about the same return on investment as KraneShares. But, KraneShares Bosera MSCI is 1.15 times less risky than KraneShares. It trades about 0.0 of its potential returns per unit of risk. KraneShares is currently generating about 0.0 per unit of risk. If you would invest 1,919 in KraneShares on September 3, 2024 and sell it today you would lose (23.00) from holding KraneShares or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
KraneShares Bosera MSCI vs. KraneShares
Performance |
| Timeline |
| KraneShares Bosera MSCI |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares Bosera and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Bosera and KraneShares
The main advantage of trading using opposite KraneShares Bosera and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Bosera 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.| KraneShares Bosera vs. Franklin FTSE South | KraneShares Bosera vs. Franklin FTSE Japan | KraneShares Bosera vs. Franklin FTSE India | KraneShares Bosera vs. Franklin FTSE Brazil |
| KraneShares vs. Franklin FTSE South | KraneShares vs. Franklin FTSE Japan | KraneShares vs. Franklin FTSE India | KraneShares 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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