Correlation Between KraneShares CSI and CHII
Can any of the company-specific risk be diversified away by investing in both KraneShares CSI and CHII 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 CSI and CHII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares CSI China and CHII, you can compare the effects of market volatilities on KraneShares CSI and CHII 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 CSI with a short position of CHII. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares CSI and CHII.
Diversification Opportunities for KraneShares CSI and CHII
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KraneShares and CHII is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares CSI China and CHII in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHII and KraneShares CSI 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 CSI China are associated (or correlated) with CHII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHII has no effect on the direction of KraneShares CSI i.e., KraneShares CSI and CHII go up and down completely randomly.
Pair Corralation between KraneShares CSI and CHII
If you would invest 1,224 in CHII on August 31, 2024 and sell it today you would earn a total of 0.00 from holding CHII or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
KraneShares CSI China vs. CHII
Performance |
| Timeline |
| KraneShares CSI China |
| CHII |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares CSI and CHII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares CSI and CHII
The main advantage of trading using opposite KraneShares CSI and CHII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares CSI position performs unexpectedly, CHII 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 CHII will offset losses from the drop in CHII's long position.| KraneShares CSI vs. Xtrackers Harvest CSI | KraneShares CSI vs. Aquagold International | KraneShares CSI vs. Thrivent High Yield | KraneShares CSI 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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