Correlation Between US Global and KraneShares Electric
Can any of the company-specific risk be diversified away by investing in both US Global and KraneShares Electric 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 US Global and KraneShares Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Sea and KraneShares Electric Vehicles, you can compare the effects of market volatilities on US Global and KraneShares Electric 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 US Global with a short position of KraneShares Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and KraneShares Electric.
Diversification Opportunities for US Global and KraneShares Electric
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between SEA and KraneShares is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding US Global Sea and KraneShares Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Electric and US Global 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 US Global Sea are associated (or correlated) with KraneShares Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Electric has no effect on the direction of US Global i.e., US Global and KraneShares Electric go up and down completely randomly.
Pair Corralation between US Global and KraneShares Electric
Considering the 90-day investment horizon US Global Sea is expected to under-perform the KraneShares Electric. But the etf apears to be less risky and, when comparing its historical volatility, US Global Sea is 1.98 times less risky than KraneShares Electric. The etf trades about -0.01 of its potential returns per unit of risk. The KraneShares Electric Vehicles is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,234 in KraneShares Electric Vehicles on December 30, 2023 and sell it today you would earn a total of 12.00 from holding KraneShares Electric Vehicles or generate 0.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
US Global Sea vs. KraneShares Electric Vehicles
Performance |
Timeline |
US Global Sea |
KraneShares Electric |
US Global and KraneShares Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with US Global and KraneShares Electric
The main advantage of trading using opposite US Global and KraneShares Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, KraneShares Electric 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 Electric will offset losses from the drop in KraneShares Electric's long position.US Global vs. Freedom Day Dividend | US Global vs. Franklin Templeton ETF | US Global vs. IShares MSCI China | US Global vs. YieldMax DIS Option |
KraneShares Electric vs. Northern Lights | KraneShares Electric vs. Dimensional International High | KraneShares Electric vs. First Trust Exchange Traded | KraneShares Electric vs. EA Series Trust |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Equity Valuation Check real value of public entities based on technical and fundamental data |