Correlation Between KraneShares Emerging and CHIH
Can any of the company-specific risk be diversified away by investing in both KraneShares Emerging and CHIH 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 Emerging and CHIH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Emerging Markets and CHIH, you can compare the effects of market volatilities on KraneShares Emerging and CHIH 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 Emerging with a short position of CHIH. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Emerging and CHIH.
Diversification Opportunities for KraneShares Emerging and CHIH
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KraneShares and CHIH is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Emerging Markets and CHIH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIH and KraneShares Emerging 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 Emerging Markets are associated (or correlated) with CHIH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIH has no effect on the direction of KraneShares Emerging i.e., KraneShares Emerging and CHIH go up and down completely randomly.
Pair Corralation between KraneShares Emerging and CHIH
If you would invest 1,460 in CHIH on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CHIH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
KraneShares Emerging Markets vs. CHIH
Performance |
| Timeline |
| KraneShares Emerging |
| CHIH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares Emerging and CHIH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Emerging and CHIH
The main advantage of trading using opposite KraneShares Emerging and CHIH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Emerging position performs unexpectedly, CHIH 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 CHIH will offset losses from the drop in CHIH's long position.| KraneShares Emerging vs. KraneShares Bosera MSCI | KraneShares Emerging vs. KraneShares MSCI One | KraneShares Emerging vs. Cambria Value and | KraneShares Emerging vs. KraneShares MSCI All |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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