Correlation Between KraneShares and Invesco Golden
Can any of the company-specific risk be diversified away by investing in both KraneShares and Invesco Golden 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 and Invesco Golden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares and Invesco Golden Dragon, you can compare the effects of market volatilities on KraneShares and Invesco Golden 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 with a short position of Invesco Golden. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares and Invesco Golden.
Diversification Opportunities for KraneShares and Invesco Golden
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between KraneShares and Invesco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares and Invesco Golden Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Golden Dragon and KraneShares 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 are associated (or correlated) with Invesco Golden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Golden Dragon has no effect on the direction of KraneShares i.e., KraneShares and Invesco Golden go up and down completely randomly.
Pair Corralation between KraneShares and Invesco Golden
If you would invest 2,532 in Invesco Golden Dragon on September 24, 2024 and sell it today you would earn a total of 135.00 from holding Invesco Golden Dragon or generate 5.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 5.0% |
Values | Daily Returns |
KraneShares vs. Invesco Golden Dragon
Performance |
Timeline |
KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Invesco Golden Dragon |
KraneShares and Invesco Golden Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KraneShares and Invesco Golden
The main advantage of trading using opposite KraneShares and Invesco Golden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares position performs unexpectedly, Invesco Golden 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 Invesco Golden will offset losses from the drop in Invesco Golden's long position.KraneShares vs. Invesco Golden Dragon | KraneShares vs. iShares MSCI Hong | KraneShares vs. iShares MSCI China | KraneShares vs. iShares China Large Cap |
Invesco Golden vs. iShares MSCI Hong | Invesco Golden vs. iShares MSCI China | Invesco Golden vs. iShares China Large Cap | Invesco Golden vs. SPDR SP Emerging |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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