Correlation Between KraneShares Trust and AdvisorShares Hotel
Can any of the company-specific risk be diversified away by investing in both KraneShares Trust and AdvisorShares Hotel 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 Trust and AdvisorShares Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Trust and AdvisorShares Hotel ETF, you can compare the effects of market volatilities on KraneShares Trust and AdvisorShares Hotel 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 Trust with a short position of AdvisorShares Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Trust and AdvisorShares Hotel.
Diversification Opportunities for KraneShares Trust and AdvisorShares Hotel
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KraneShares and AdvisorShares is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Trust and AdvisorShares Hotel ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Hotel ETF and KraneShares Trust 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 Trust are associated (or correlated) with AdvisorShares Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Hotel ETF has no effect on the direction of KraneShares Trust i.e., KraneShares Trust and AdvisorShares Hotel go up and down completely randomly.
Pair Corralation between KraneShares Trust and AdvisorShares Hotel
Given the investment horizon of 90 days KraneShares Trust is expected to generate 0.32 times more return on investment than AdvisorShares Hotel. However, KraneShares Trust is 3.12 times less risky than AdvisorShares Hotel. It trades about 0.18 of its potential returns per unit of risk. AdvisorShares Hotel ETF is currently generating about -0.04 per unit of risk. If you would invest 2,930 in KraneShares Trust on August 19, 2025 and sell it today you would earn a total of 134.00 from holding KraneShares Trust or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
KraneShares Trust vs. AdvisorShares Hotel ETF
Performance |
| Timeline |
| KraneShares Trust |
| AdvisorShares Hotel ETF |
KraneShares Trust and AdvisorShares Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Trust and AdvisorShares Hotel
The main advantage of trading using opposite KraneShares Trust and AdvisorShares Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Trust position performs unexpectedly, AdvisorShares Hotel 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 AdvisorShares Hotel will offset losses from the drop in AdvisorShares Hotel's long position.| KraneShares Trust vs. KraneShares Trust | KraneShares Trust vs. AdvisorShares Restaurant ETF | KraneShares Trust vs. Matthews China Discovery | KraneShares Trust vs. Amplify Weight Loss |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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