Correlation Between NYSE Composite and KraneShares Electric
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and KraneShares Electric 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 NYSE Composite and KraneShares Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and KraneShares Electric Vehicles, you can compare the effects of market volatilities on NYSE Composite and KraneShares Electric 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 NYSE Composite with a short position of KraneShares Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and KraneShares Electric.
Diversification Opportunities for NYSE Composite and KraneShares Electric
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and KraneShares is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and KraneShares Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Electric and NYSE Composite 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 NYSE Composite are associated (or correlated) with KraneShares Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Electric has no effect on the direction of NYSE Composite i.e., NYSE Composite and KraneShares Electric go up and down completely randomly.
Pair Corralation between NYSE Composite and KraneShares Electric
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.42 times more return on investment than KraneShares Electric. However, NYSE Composite is 2.41 times less risky than KraneShares Electric. It trades about 0.08 of its potential returns per unit of risk. KraneShares Electric Vehicles is currently generating about -0.03 per unit of risk. If you would invest 1,556,254 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 470,950 from holding NYSE Composite or generate 30.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. KraneShares Electric Vehicles
Performance |
| Timeline |
NYSE Composite and KraneShares Electric Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
KraneShares Electric Vehicles
Pair trading matchups for KraneShares Electric
Pair Trading with NYSE Composite and KraneShares Electric
The main advantage of trading using opposite NYSE Composite and KraneShares Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, KraneShares Electric 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 Electric will offset losses from the drop in KraneShares Electric's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| KraneShares Electric vs. SPDR SP Kensho | KraneShares Electric vs. iShares Self Driving EV | KraneShares Electric vs. Amplify Lithium Battery | KraneShares Electric vs. Global X Autonomous |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |