Correlation Between GraniteShares ETF and KraneShares Hang
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF and KraneShares Hang 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 GraniteShares ETF and KraneShares Hang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares ETF Trust and KraneShares Hang Seng, you can compare the effects of market volatilities on GraniteShares ETF and KraneShares Hang 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 GraniteShares ETF with a short position of KraneShares Hang. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and KraneShares Hang.
Diversification Opportunities for GraniteShares ETF and KraneShares Hang
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and KraneShares is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and KraneShares Hang Seng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Hang Seng and GraniteShares ETF 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 GraniteShares ETF Trust are associated (or correlated) with KraneShares Hang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Hang Seng has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and KraneShares Hang go up and down completely randomly.
Pair Corralation between GraniteShares ETF and KraneShares Hang
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 0.5 times more return on investment than KraneShares Hang. However, GraniteShares ETF Trust is 2.02 times less risky than KraneShares Hang. It trades about 0.18 of its potential returns per unit of risk. KraneShares Hang Seng is currently generating about 0.07 per unit of risk. If you would invest 6,389 in GraniteShares ETF Trust on August 5, 2025 and sell it today you would earn a total of 457.00 from holding GraniteShares ETF Trust or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. KraneShares Hang Seng
Performance |
| Timeline |
| GraniteShares ETF Trust |
| KraneShares Hang Seng |
GraniteShares ETF and KraneShares Hang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and KraneShares Hang
The main advantage of trading using opposite GraniteShares ETF and KraneShares Hang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF position performs unexpectedly, KraneShares Hang 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 Hang will offset losses from the drop in KraneShares Hang's long position.| GraniteShares ETF vs. Pacer Trendpilot | GraniteShares ETF vs. Goldman Sachs ActiveBeta | GraniteShares ETF vs. T Rowe Price | GraniteShares ETF vs. India Internet Ecommerce |
| KraneShares Hang vs. BlackRock ETF Trust | KraneShares Hang vs. iShares MSCI Ireland | KraneShares Hang vs. KraneShares MSCI Emerging | KraneShares Hang vs. KraneShares MSCI China |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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