Correlation Between KBUY and IShares JP
Can any of the company-specific risk be diversified away by investing in both KBUY and IShares 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 KBUY and IShares JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KBUY and iShares JP Morgan, you can compare the effects of market volatilities on KBUY and IShares 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 KBUY with a short position of IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of KBUY and IShares JP.
Diversification Opportunities for KBUY and IShares JP
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KBUY and IShares is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding KBUY and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan and KBUY 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 KBUY are associated (or correlated) with IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of KBUY i.e., KBUY and IShares JP go up and down completely randomly.
Pair Corralation between KBUY and IShares JP
Given the investment horizon of 90 days KBUY is expected to generate 0.93 times more return on investment than IShares JP. However, KBUY is 1.08 times less risky than IShares JP. It trades about 0.83 of its potential returns per unit of risk. iShares JP Morgan is currently generating about 0.13 per unit of risk. If you would invest 1,705 in KBUY on September 12, 2024 and sell it today you would earn a total of 23.00 from holding KBUY or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.14% |
| Values | Daily Returns |
KBUY vs. iShares JP Morgan
Performance |
| Timeline |
| KBUY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares JP Morgan |
KBUY and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KBUY and IShares JP
The main advantage of trading using opposite KBUY and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBUY position performs unexpectedly, IShares 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 IShares JP will offset losses from the drop in IShares JP's long position.| KBUY vs. KraneShares CSI China | KBUY vs. Invesco China Technology | KBUY vs. iShares MSCI India | KBUY vs. Xtrackers Harvest CSI |
| IShares JP vs. iShares JP Morgan | IShares JP vs. SPDR Bloomberg International | IShares JP vs. VanEck JP Morgan | IShares JP vs. Invesco Fundamental High |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |