Correlation Between United States and KraneShares Global
Can any of the company-specific risk be diversified away by investing in both United States and KraneShares Global 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 United States and KraneShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Oil and KraneShares Global Carbon, you can compare the effects of market volatilities on United States and KraneShares Global 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 United States with a short position of KraneShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and KraneShares Global.
Diversification Opportunities for United States and KraneShares Global
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and KraneShares is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding United States Oil and KraneShares Global Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Global Carbon and United States 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 United States Oil are associated (or correlated) with KraneShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Global Carbon has no effect on the direction of United States i.e., United States and KraneShares Global go up and down completely randomly.
Pair Corralation between United States and KraneShares Global
Considering the 90-day investment horizon United States Oil is expected to generate 1.22 times more return on investment than KraneShares Global. However, United States is 1.22 times more volatile than KraneShares Global Carbon. It trades about 0.11 of its potential returns per unit of risk. KraneShares Global Carbon is currently generating about -0.13 per unit of risk. If you would invest 7,069 in United States Oil on September 13, 2024 and sell it today you would earn a total of 264.00 from holding United States Oil or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Oil vs. KraneShares Global Carbon
Performance |
| Timeline |
| United States Oil |
| KraneShares Global Carbon |
United States and KraneShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and KraneShares Global
The main advantage of trading using opposite United States and KraneShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, KraneShares Global 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 Global will offset losses from the drop in KraneShares Global's long position.| United States vs. United States Natural | United States vs. SPDR Gold Shares | United States vs. ProShares Ultra Bloomberg | United States vs. Energy Select Sector |
| KraneShares Global vs. Ultimus Managers Trust | KraneShares Global vs. Direxion Daily SP | KraneShares Global vs. EA Series Trust | KraneShares Global vs. Global X MLP |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |