Correlation Between NYSE Composite and KraneShares
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and KraneShares 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, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and KraneShares.
Diversification Opportunities for NYSE Composite and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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. 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 NYSE Composite i.e., NYSE Composite and KraneShares go up and down completely randomly.
Pair Corralation between NYSE Composite and KraneShares
If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. KraneShares
Performance |
| Timeline |
NYSE Composite and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with NYSE Composite and KraneShares
The main advantage of trading using opposite NYSE Composite and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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