Correlation Between KraneShares CSI and GLCN
Can any of the company-specific risk be diversified away by investing in both KraneShares CSI and GLCN 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 GLCN 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 GLCN, you can compare the effects of market volatilities on KraneShares CSI and GLCN 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 GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares CSI and GLCN.
Diversification Opportunities for KraneShares CSI and GLCN
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KraneShares and GLCN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares CSI China and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN 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 GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of KraneShares CSI i.e., KraneShares CSI and GLCN go up and down completely randomly.
Pair Corralation between KraneShares CSI and GLCN
If you would invest 2,891 in KraneShares CSI China on September 15, 2024 and sell it today you would earn a total of 280.00 from holding KraneShares CSI China or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
KraneShares CSI China vs. GLCN
Performance |
| Timeline |
| KraneShares CSI China |
| GLCN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KraneShares CSI and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares CSI and GLCN
The main advantage of trading using opposite KraneShares CSI and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares CSI position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN's long position.| KraneShares CSI vs. Invesco China Technology | KraneShares CSI vs. iShares MSCI India | KraneShares CSI vs. Xtrackers Harvest CSI | KraneShares CSI vs. SPDR SP China |
| GLCN vs. KraneShares CSI China | GLCN vs. Invesco China Technology | GLCN vs. iShares MSCI India | GLCN vs. Xtrackers Harvest CSI |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |