Correlation Between WisdomTree Managed and KraneShares
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed 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 WisdomTree Managed and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Managed Futures and KraneShares, you can compare the effects of market volatilities on WisdomTree Managed 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 WisdomTree Managed with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and KraneShares.
Diversification Opportunities for WisdomTree Managed and KraneShares
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and KraneShares is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and WisdomTree Managed 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 WisdomTree Managed Futures 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 WisdomTree Managed i.e., WisdomTree Managed and KraneShares go up and down completely randomly.
Pair Corralation between WisdomTree Managed and KraneShares
If you would invest 3,423 in WisdomTree Managed Futures on August 29, 2024 and sell it today you would earn a total of 143.00 from holding WisdomTree Managed Futures or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. KraneShares
Performance |
| Timeline |
| WisdomTree Managed |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WisdomTree Managed and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and KraneShares
The main advantage of trading using opposite WisdomTree Managed and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed 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.| WisdomTree Managed vs. First Trust Managed | WisdomTree Managed vs. iMGP DBi Managed | WisdomTree Managed vs. First Trust LongShort | WisdomTree Managed vs. WisdomTree CBOE SP |
| KraneShares vs. KraneShares Emerging Markets | KraneShares vs. KraneShares MSCI All | 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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