Correlation Between AIM ETF and KraneShares
Can any of the company-specific risk be diversified away by investing in both AIM ETF 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 AIM ETF and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ETF Products and KraneShares, you can compare the effects of market volatilities on AIM ETF 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 AIM ETF with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and KraneShares.
Diversification Opportunities for AIM ETF and KraneShares
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIM and KraneShares is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and AIM ETF 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 AIM ETF Products 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 AIM ETF i.e., AIM ETF and KraneShares go up and down completely randomly.
Pair Corralation between AIM ETF and KraneShares
Given the investment horizon of 90 days AIM ETF Products is expected to generate 43.93 times more return on investment than KraneShares. However, AIM ETF is 43.93 times more volatile than KraneShares. It trades about 0.08 of its potential returns per unit of risk. KraneShares is currently generating about 0.0 per unit of risk. If you would invest 0.01 in AIM ETF Products on September 3, 2024 and sell it today you would earn a total of 2,685 from holding AIM ETF Products or generate 2.68499E7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.53% |
| Values | Daily Returns |
AIM ETF Products vs. KraneShares
Performance |
| Timeline |
| AIM ETF Products |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AIM ETF and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and KraneShares
The main advantage of trading using opposite AIM ETF and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF 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.| AIM ETF vs. FT Vest Equity | AIM ETF vs. Northern Lights | AIM ETF vs. Dimensional International High | AIM ETF vs. JPMorgan Fundamental Data |
| KraneShares vs. Franklin FTSE South | KraneShares vs. Franklin FTSE Japan | KraneShares vs. Franklin FTSE India | KraneShares vs. Franklin FTSE Brazil |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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