Correlation Between KBND and VanEck JP
Can any of the company-specific risk be diversified away by investing in both KBND and VanEck JP 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 KBND and VanEck JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBND and VanEck JP Morgan, you can compare the effects of market volatilities on KBND and VanEck JP 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 KBND with a short position of VanEck JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBND and VanEck JP.
Diversification Opportunities for KBND and VanEck JP
Poor diversification
The 3 months correlation between KBND and VanEck is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding KBND and VanEck JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck JP Morgan and KBND 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 KBND are associated (or correlated) with VanEck JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck JP Morgan has no effect on the direction of KBND i.e., KBND and VanEck JP go up and down completely randomly.
Pair Corralation between KBND and VanEck JP
If you would invest 3,069 in KBND on August 26, 2024 and sell it today you would earn a total of 0.00 from holding KBND or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.54% |
| Values | Daily Returns |
KBND vs. VanEck JP Morgan
Performance |
| Timeline |
| KBND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VanEck JP Morgan |
KBND and VanEck JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBND and VanEck JP
The main advantage of trading using opposite KBND and VanEck JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBND position performs unexpectedly, VanEck JP 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 VanEck JP will offset losses from the drop in VanEck JP's long position.| KBND vs. VanEck China Bond | KBND vs. KraneShares Asia Pacific | KBND vs. KraneShares MSCI All | KBND vs. First Trust Long |
| VanEck JP vs. Invesco Emerging Markets | VanEck JP vs. PIMCO 15 Year | VanEck JP vs. SPDR Bloomberg Emerging | VanEck JP vs. iShares JP Morgan |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |