Correlation Between KraneShares SSE and KBUY
Can any of the company-specific risk be diversified away by investing in both KraneShares SSE and KBUY 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 SSE and KBUY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares SSE STAR and KBUY, you can compare the effects of market volatilities on KraneShares SSE and KBUY 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 SSE with a short position of KBUY. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares SSE and KBUY.
Diversification Opportunities for KraneShares SSE and KBUY
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and KBUY is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares SSE STAR and KBUY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBUY and KraneShares SSE 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 SSE STAR are associated (or correlated) with KBUY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBUY has no effect on the direction of KraneShares SSE i.e., KraneShares SSE and KBUY go up and down completely randomly.
Pair Corralation between KraneShares SSE and KBUY
If you would invest 1,330 in KraneShares SSE STAR on September 1, 2024 and sell it today you would earn a total of 15.00 from holding KraneShares SSE STAR or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
KraneShares SSE STAR vs. KBUY
Performance |
| Timeline |
| KraneShares SSE STAR |
| KBUY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares SSE and KBUY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares SSE and KBUY
The main advantage of trading using opposite KraneShares SSE and KBUY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares SSE position performs unexpectedly, KBUY 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 KBUY will offset losses from the drop in KBUY's long position.| KraneShares SSE vs. KraneShares MSCI All | KraneShares SSE vs. KraneShares Bosera MSCI | KraneShares SSE vs. KraneShares MSCI China |
| KBUY vs. Xtrackers Harvest CSI | KBUY vs. Aquagold International | KBUY vs. Thrivent High Yield | KBUY vs. Morningstar Unconstrained Allocation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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