Correlation Between Pacific North and KraneShares SSE

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Can any of the company-specific risk be diversified away by investing in both Pacific North and KraneShares SSE 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 Pacific North and KraneShares SSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific North of and KraneShares SSE STAR, you can compare the effects of market volatilities on Pacific North and KraneShares SSE 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 Pacific North with a short position of KraneShares SSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific North and KraneShares SSE.

Diversification Opportunities for Pacific North and KraneShares SSE

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Pacific and KraneShares is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pacific North of and KraneShares SSE STAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares SSE STAR and Pacific North 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 Pacific North of are associated (or correlated) with KraneShares SSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares SSE STAR has no effect on the direction of Pacific North i.e., Pacific North and KraneShares SSE go up and down completely randomly.

Pair Corralation between Pacific North and KraneShares SSE

Given the investment horizon of 90 days Pacific North of is expected to generate 0.56 times more return on investment than KraneShares SSE. However, Pacific North of is 1.78 times less risky than KraneShares SSE. It trades about 0.17 of its potential returns per unit of risk. KraneShares SSE STAR is currently generating about -0.01 per unit of risk. If you would invest  3,006  in Pacific North of on October 9, 2025 and sell it today you would earn a total of  360.00  from holding Pacific North of or generate 11.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Pacific North of  vs.  KraneShares SSE STAR

 Performance 
       Timeline  
Pacific North 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Pacific North of are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Pacific North may actually be approaching a critical reversion point that can send shares even higher in February 2026.
KraneShares SSE STAR 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days KraneShares SSE STAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, KraneShares SSE is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pacific North and KraneShares SSE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pacific North and KraneShares SSE

The main advantage of trading using opposite Pacific North and KraneShares SSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific North position performs unexpectedly, KraneShares SSE 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 SSE will offset losses from the drop in KraneShares SSE's long position.
The idea behind Pacific North of and KraneShares SSE STAR 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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