Correlation Between KraneShares and Simplify Exchange
Can any of the company-specific risk be diversified away by investing in both KraneShares and Simplify Exchange 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 Simplify Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares and Simplify Exchange Traded, you can compare the effects of market volatilities on KraneShares and Simplify Exchange 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 Simplify Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares and Simplify Exchange.
Diversification Opportunities for KraneShares and Simplify Exchange
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and Simplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares and Simplify Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Exchange Traded 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 Simplify Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Exchange Traded has no effect on the direction of KraneShares i.e., KraneShares and Simplify Exchange go up and down completely randomly.
Pair Corralation between KraneShares and Simplify Exchange
If you would invest (100.00) in KraneShares on November 9, 2024 and sell it today you would earn a total of 100.00 from holding KraneShares or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KraneShares vs. Simplify Exchange Traded
Performance |
| Timeline |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Simplify Exchange Traded |
KraneShares and Simplify Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares and Simplify Exchange
The main advantage of trading using opposite KraneShares and Simplify Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares position performs unexpectedly, Simplify Exchange 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 Simplify Exchange will offset losses from the drop in Simplify Exchange's long position.| KraneShares vs. KraneShares SSE STAR | KraneShares vs. KraneShares MSCI China | KraneShares vs. KraneShares MSCI All |
| Simplify Exchange vs. Quadratic Deflation ETF | Simplify Exchange vs. Simplify Exchange Traded | Simplify Exchange vs. Simplify Interest Rate | Simplify Exchange vs. AGFiQ Market Neutral |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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