Correlation Between YieldMax MSTR and KraneShares
Can any of the company-specific risk be diversified away by investing in both YieldMax MSTR 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 YieldMax MSTR and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax MSTR Option and KraneShares, you can compare the effects of market volatilities on YieldMax MSTR 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 YieldMax MSTR with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax MSTR and KraneShares.
Diversification Opportunities for YieldMax MSTR and KraneShares
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YieldMax and KraneShares is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax MSTR Option and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and YieldMax MSTR 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 YieldMax MSTR Option 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 YieldMax MSTR i.e., YieldMax MSTR and KraneShares go up and down completely randomly.
Pair Corralation between YieldMax MSTR and KraneShares
If you would invest 2,652 in YieldMax MSTR Option on August 27, 2024 and sell it today you would earn a total of 933.00 from holding YieldMax MSTR Option or generate 35.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
YieldMax MSTR Option vs. KraneShares
Performance |
| Timeline |
| YieldMax MSTR Option |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
YieldMax MSTR and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax MSTR and KraneShares
The main advantage of trading using opposite YieldMax MSTR and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax MSTR 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.| YieldMax MSTR vs. Tidal Trust II | YieldMax MSTR vs. Tidal Trust II | YieldMax MSTR vs. First Trust Dorsey | YieldMax MSTR vs. Direxion Daily META |
| KraneShares vs. Technology Select Sector | KraneShares vs. YieldMax MSTR Option | KraneShares vs. Valkyrie Bitcoin Strategy | KraneShares vs. Global X Cybersecurity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |