Correlation Between 3M and KraneShares
Can any of the company-specific risk be diversified away by investing in both 3M and KraneShares 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 3M and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3M Company and KraneShares, you can compare the effects of market volatilities on 3M and KraneShares 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 3M with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and KraneShares.
Diversification Opportunities for 3M and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 3M and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and 3M 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 3M Company are associated (or correlated) with KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of 3M i.e., 3M and KraneShares go up and down completely randomly.
Pair Corralation between 3M and KraneShares
If you would invest 12,966 in 3M Company on September 13, 2024 and sell it today you would earn a total of 9.00 from holding 3M Company or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
3M Company vs. KraneShares
Performance |
| Timeline |
| 3M Company |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
3M and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and KraneShares
The main advantage of trading using opposite 3M and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| 3M vs. Vast Renewables Limited | 3M vs. 1847 Holdings LLC | 3M vs. Westport Fuel Systems | 3M vs. Falcons Beyond Global, |
| KraneShares vs. KraneShares California Carbon | KraneShares vs. KraneShares European Carbon | KraneShares vs. KraneShares Global Carbon |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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