Correlation Between KraneShares CSI and Seibels Bruce
Can any of the company-specific risk be diversified away by investing in both KraneShares CSI and Seibels Bruce 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 KraneShares CSI and Seibels Bruce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares CSI China and The Seibels Bruce, you can compare the effects of market volatilities on KraneShares CSI and Seibels Bruce 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 KraneShares CSI with a short position of Seibels Bruce. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares CSI and Seibels Bruce.
Diversification Opportunities for KraneShares CSI and Seibels Bruce
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KraneShares and Seibels is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares CSI China and The Seibels Bruce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seibels Bruce and KraneShares CSI 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 KraneShares CSI China are associated (or correlated) with Seibels Bruce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seibels Bruce has no effect on the direction of KraneShares CSI i.e., KraneShares CSI and Seibels Bruce go up and down completely randomly.
Pair Corralation between KraneShares CSI and Seibels Bruce
If you would invest 2,615 in KraneShares CSI China on December 29, 2023 and sell it today you would earn a total of 18.00 from holding KraneShares CSI China or generate 0.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 86.96% |
Values | Daily Returns |
KraneShares CSI China vs. The Seibels Bruce
Performance |
Timeline |
KraneShares CSI China |
Seibels Bruce |
KraneShares CSI and Seibels Bruce Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KraneShares CSI and Seibels Bruce
The main advantage of trading using opposite KraneShares CSI and Seibels Bruce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares CSI position performs unexpectedly, Seibels Bruce 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 Seibels Bruce will offset losses from the drop in Seibels Bruce's long position.KraneShares CSI vs. IShares Exponential Technologies | KraneShares CSI vs. EMQQ The Emerging | KraneShares CSI vs. Fidelity MSCI Information | KraneShares CSI vs. First Trust Nasdaq |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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