Correlation Between Dow Jones and KSM Mutual
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dow Jones Industrial and KSM Mutual Funds, you can compare the effects of market volatilities on Dow Jones and KSM Mutual 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 Dow Jones with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and KSM Mutual.
Diversification Opportunities for Dow Jones and KSM Mutual
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and KSM is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and KSM Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSM Mutual Funds and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with KSM Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSM Mutual Funds has no effect on the direction of Dow Jones i.e., Dow Jones and KSM Mutual go up and down completely randomly.
Pair Corralation between Dow Jones and KSM Mutual
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 6.6 times more return on investment than KSM Mutual. However, Dow Jones is 6.6 times more volatile than KSM Mutual Funds. It trades about 0.26 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about 0.73 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.61% |
| Values | Daily Returns |
Dow Jones Industrial vs. KSM Mutual Funds
Performance |
| Timeline |
Dow Jones and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
KSM Mutual Funds
Pair trading matchups for KSM Mutual
Pair Trading with Dow Jones and KSM Mutual
The main advantage of trading using opposite Dow Jones and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, KSM Mutual 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 KSM Mutual will offset losses from the drop in KSM Mutual's long position.| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
| KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |