Correlation Between Simplify Exchange and KraneShares
Can any of the company-specific risk be diversified away by investing in both Simplify Exchange 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 Simplify Exchange and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simplify Exchange Traded and KraneShares, you can compare the effects of market volatilities on Simplify Exchange 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 Simplify Exchange with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplify Exchange and KraneShares.
Diversification Opportunities for Simplify Exchange and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simplify and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Exchange Traded and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and Simplify Exchange 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 Simplify Exchange Traded 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 Simplify Exchange i.e., Simplify Exchange and KraneShares go up and down completely randomly.
Pair Corralation between Simplify Exchange and KraneShares
If you would invest 2,480 in Simplify Exchange Traded on November 9, 2024 and sell it today you would earn a total of 551.00 from holding Simplify Exchange Traded or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Simplify Exchange Traded vs. KraneShares
Performance |
| Timeline |
| Simplify Exchange Traded |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Simplify Exchange and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simplify Exchange and KraneShares
The main advantage of trading using opposite Simplify Exchange and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simplify Exchange 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.| Simplify Exchange vs. Quadratic Deflation ETF | Simplify Exchange vs. Simplify Exchange Traded | Simplify Exchange vs. Simplify Interest Rate | Simplify Exchange vs. AGFiQ Market Neutral |
| KraneShares vs. KraneShares SSE STAR | KraneShares vs. KraneShares MSCI China | KraneShares vs. KraneShares MSCI All |
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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