Correlation Between KraneShares Bosera and KFVG

Can any of the company-specific risk be diversified away by investing in both KraneShares Bosera and KFVG 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 Bosera and KFVG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KraneShares Bosera MSCI and KFVG, you can compare the effects of market volatilities on KraneShares Bosera and KFVG 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 Bosera with a short position of KFVG. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Bosera and KFVG.

Diversification Opportunities for KraneShares Bosera and KFVG

0.0

Correlation Coefficient

KraneShares Bosera  KFVG

Pay attention - limited upside

The 3 months correlation between KraneShares and KFVG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Bosera MSCI and KFVG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KFVG and KraneShares Bosera 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 Bosera MSCI are associated (or correlated) with KFVG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KFVG has no effect on the direction of KraneShares Bosera i.e., KraneShares Bosera and KFVG go up and down completely randomly.

Pair Corralation between KraneShares Bosera and KFVG

If you would invest (100.00) in KFVG on December 30, 2024 and sell it today you would earn a total of  100.00  from holding KFVG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KraneShares Bosera MSCI  vs.  KFVG

KraneShares Bosera MSCI

Risk-Adjusted Performance

Very Weak

Over the last 90 days KraneShares Bosera MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, KraneShares Bosera is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

KFVG

Risk-Adjusted Performance

Very Weak

Over the last 90 days KFVG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, KFVG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with KraneShares Bosera and KFVG

The main advantage of trading using opposite KraneShares Bosera and KFVG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Bosera position performs unexpectedly, KFVG 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 KFVG will offset losses from the drop in KFVG's long position.

The idea behind KraneShares Bosera MSCI and KFVG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.