Correlation Between KraneShares Trust and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both KraneShares Trust and Spinnaker ETF 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 Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KraneShares Trust and Spinnaker ETF Series, you can compare the effects of market volatilities on KraneShares Trust and Spinnaker ETF 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 Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of KraneShares Trust and Spinnaker ETF.
Diversification Opportunities for KraneShares Trust and Spinnaker ETF
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KraneShares and Spinnaker is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares Trust and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series 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 Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of KraneShares Trust i.e., KraneShares Trust and Spinnaker ETF go up and down completely randomly.
Pair Corralation between KraneShares Trust and Spinnaker ETF
Given the investment horizon of 90 days KraneShares Trust is expected to under-perform the Spinnaker ETF. But the etf apears to be less risky and, when comparing its historical volatility, KraneShares Trust is 1.3 times less risky than Spinnaker ETF. The etf trades about -0.12 of its potential returns per unit of risk. The Spinnaker ETF Series is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,122 in Spinnaker ETF Series on August 18, 2025 and sell it today you would earn a total of 4.00 from holding Spinnaker ETF Series or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KraneShares Trust vs. Spinnaker ETF Series
Performance |
| Timeline |
| KraneShares Trust |
| Spinnaker ETF Series |
KraneShares Trust and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KraneShares Trust and Spinnaker ETF
The main advantage of trading using opposite KraneShares Trust and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares Trust position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF'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 |
| Spinnaker ETF vs. AdvisorShares Hotel ETF | Spinnaker ETF vs. Matthews China Discovery | Spinnaker ETF vs. Spinnaker ETF Series | Spinnaker ETF vs. Litman Gregory Funds |
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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