Correlation Between KraneShares Bosera and Cambria Shareholder
Can any of the company-specific risk be diversified away by investing in both KraneShares Bosera and Cambria Shareholder 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 Cambria Shareholder 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 Cambria Shareholder Yield, you can compare the effects of market volatilities on KraneShares Bosera and Cambria Shareholder 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 Cambria Shareholder. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Bosera and Cambria Shareholder.
Diversification Opportunities for KraneShares Bosera and Cambria Shareholder
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KraneShares and Cambria is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Bosera MSCI and Cambria Shareholder Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Shareholder Yield 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 Cambria Shareholder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Shareholder Yield has no effect on the direction of KraneShares Bosera i.e., KraneShares Bosera and Cambria Shareholder go up and down completely randomly.
Pair Corralation between KraneShares Bosera and Cambria Shareholder
Considering the 90-day investment horizon KraneShares Bosera MSCI is expected to under-perform the Cambria Shareholder. In addition to that, KraneShares Bosera is 1.9 times more volatile than Cambria Shareholder Yield. It trades about -0.09 of its total potential returns per unit of risk. Cambria Shareholder Yield is currently generating about 0.3 per unit of volatility. If you would invest 7,016 in Cambria Shareholder Yield on September 4, 2024 and sell it today you would earn a total of 541.00 from holding Cambria Shareholder Yield or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
KraneShares Bosera MSCI vs. Cambria Shareholder Yield
Performance |
| Timeline |
| KraneShares Bosera MSCI |
| Cambria Shareholder Yield |
KraneShares Bosera and Cambria Shareholder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Bosera and Cambria Shareholder
The main advantage of trading using opposite KraneShares Bosera and Cambria Shareholder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Bosera position performs unexpectedly, Cambria Shareholder 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 Cambria Shareholder will offset losses from the drop in Cambria Shareholder's long position.| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
| Cambria Shareholder vs. Vanguard Mid Cap Value | Cambria Shareholder vs. SPDR SP Dividend | Cambria Shareholder vs. SCOR PK | Cambria Shareholder vs. HUMANA INC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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