Correlation Between T Rowe and KraneShares
Can any of the company-specific risk be diversified away by investing in both T Rowe 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 T Rowe and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rowe Price and KraneShares, you can compare the effects of market volatilities on T Rowe 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 T Rowe with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rowe and KraneShares.
Diversification Opportunities for T Rowe and KraneShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TFLR and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding T Rowe Price and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and T Rowe 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 T Rowe Price 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 T Rowe i.e., T Rowe and KraneShares go up and down completely randomly.
Pair Corralation between T Rowe and KraneShares
If you would invest (100.00) in KraneShares on November 28, 2024 and sell it today you would earn a total of 100.00 from holding KraneShares or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
T Rowe Price vs. KraneShares
Performance |
| Timeline |
| T Rowe Price |
| KraneShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
T Rowe and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rowe and KraneShares
The main advantage of trading using opposite T Rowe and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rowe 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.| T Rowe vs. T Rowe Price | T Rowe vs. T Rowe Price | T Rowe vs. Angel Oak UltraShort | T Rowe vs. T Rowe Price |
| KraneShares vs. KraneShares Asia Pacific | KraneShares vs. KraneShares European Carbon | KraneShares vs. KraneShares California Carbon |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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