Correlation Between Pacific North and KraneShares SSE
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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific North of vs. KraneShares SSE STAR
Performance |
| Timeline |
| Pacific North |
| KraneShares SSE STAR |
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.| Pacific North vs. Invesco KBW Regional | Pacific North vs. PortfolioPlus Emerging Markets | Pacific North vs. Emerging Markets Active | Pacific North vs. Xtrackers FTSE Developed |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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