Correlation Between Columbia and KraneShares
Can any of the company-specific risk be diversified away by investing in both Columbia 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 Columbia and KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia EM Core and KraneShares, you can compare the effects of market volatilities on Columbia 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 Columbia with a short position of KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia and KraneShares.
Diversification Opportunities for Columbia and KraneShares
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Columbia and KraneShares is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Columbia EM Core and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares and Columbia 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 Columbia EM Core 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 Columbia i.e., Columbia and KraneShares go up and down completely randomly.
Pair Corralation between Columbia and KraneShares
If you would invest 3,051 in Columbia EM Core on August 29, 2024 and sell it today you would earn a total of 82.00 from holding Columbia EM Core or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Columbia EM Core vs. KraneShares
Performance |
| Timeline |
| Columbia EM Core |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Columbia and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia and KraneShares
The main advantage of trading using opposite Columbia and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia 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.| Columbia vs. iShares MSCI Emerging | Columbia vs. Hartford Multifactor Emerging | Columbia vs. SPDR MSCI Emerging | Columbia vs. FlexShares Morningstar Emerging |
| KraneShares vs. Invesco PureBeta MSCI | KraneShares vs. Aquagold International | KraneShares vs. Morningstar Unconstrained Allocation | KraneShares vs. High Yield Municipal Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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