Correlation Between KSET and IPath Series
Can any of the company-specific risk be diversified away by investing in both KSET and IPath Series 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 KSET and IPath Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KSET and iPath Series B, you can compare the effects of market volatilities on KSET and IPath Series 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 KSET with a short position of IPath Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSET and IPath Series.
Diversification Opportunities for KSET and IPath Series
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KSET and IPath is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KSET and iPath Series B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPath Series B and KSET 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 KSET are associated (or correlated) with IPath Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPath Series B has no effect on the direction of KSET i.e., KSET and IPath Series go up and down completely randomly.
Pair Corralation between KSET and IPath Series
If you would invest (100.00) in KSET on November 28, 2024 and sell it today you would earn a total of 100.00 from holding KSET 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 |
KSET vs. iPath Series B
Performance |
| Timeline |
| KSET |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| iPath Series B |
KSET and IPath Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSET and IPath Series
The main advantage of trading using opposite KSET and IPath Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSET position performs unexpectedly, IPath Series 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 IPath Series will offset losses from the drop in IPath Series' long position.| KSET vs. KraneShares European Carbon | KSET vs. KraneShares California Carbon | KSET vs. KraneShares Global Carbon | KSET vs. iPath Series B |
| IPath Series vs. KraneShares Global Carbon | IPath Series vs. KraneShares European Carbon | IPath Series vs. KraneShares California Carbon | IPath Series vs. Breakwave Dry Bulk |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |