Correlation Between KraneShares and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both KraneShares and Franklin FTSE 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 and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares and Franklin FTSE China, you can compare the effects of market volatilities on KraneShares and Franklin FTSE 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 with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares and Franklin FTSE.
Diversification Opportunities for KraneShares and Franklin FTSE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares and Franklin FTSE China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE China and KraneShares 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 are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE China has no effect on the direction of KraneShares i.e., KraneShares and Franklin FTSE go up and down completely randomly.
Pair Corralation between KraneShares and Franklin FTSE
If you would invest 1,852 in Franklin FTSE China on November 9, 2024 and sell it today you would earn a total of 71.00 from holding Franklin FTSE China or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KraneShares vs. Franklin FTSE China
Performance |
| Timeline |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Franklin FTSE China |
KraneShares and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares and Franklin FTSE
The main advantage of trading using opposite KraneShares and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE's long position.| KraneShares vs. KraneShares SSE STAR | KraneShares vs. KraneShares MSCI China | KraneShares vs. KraneShares MSCI All |
| Franklin FTSE vs. Franklin FTSE South | Franklin FTSE vs. Franklin FTSE Japan | Franklin FTSE vs. Franklin FTSE India | Franklin FTSE 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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