Correlation Between TAO and KraneShares CSI
Can any of the company-specific risk be diversified away by investing in both TAO and KraneShares CSI 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 TAO and KraneShares CSI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAO and KraneShares CSI China, you can compare the effects of market volatilities on TAO and KraneShares CSI 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 TAO with a short position of KraneShares CSI. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAO and KraneShares CSI.
Diversification Opportunities for TAO and KraneShares CSI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TAO and KraneShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TAO and KraneShares CSI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares CSI China and TAO 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 TAO are associated (or correlated) with KraneShares CSI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares CSI China has no effect on the direction of TAO i.e., TAO and KraneShares CSI go up and down completely randomly.
Pair Corralation between TAO and KraneShares CSI
If you would invest 2,494 in KraneShares CSI China on January 24, 2024 and sell it today you would earn a total of 57.00 from holding KraneShares CSI China or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TAO vs. KraneShares CSI China
Performance |
| Timeline |
| TAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KraneShares CSI China |
TAO and KraneShares CSI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAO and KraneShares CSI
The main advantage of trading using opposite TAO and KraneShares CSI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAO position performs unexpectedly, KraneShares CSI 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 CSI will offset losses from the drop in KraneShares CSI's long position.| TAO vs. Loncar Cancer Immunotherapy | TAO vs. Aquagold International | TAO vs. Morningstar Unconstrained Allocation | TAO vs. Thrivent High Yield |
| KraneShares CSI vs. Loncar Cancer Immunotherapy | KraneShares CSI vs. Aquagold International | KraneShares CSI vs. Morningstar Unconstrained Allocation | KraneShares CSI vs. Thrivent High Yield |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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