Correlation Between KTAM Gold and KTAM SET
Can any of the company-specific risk be diversified away by investing in both KTAM Gold and KTAM SET 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 KTAM Gold and KTAM SET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTAM Gold ETF and KTAM SET ICT, you can compare the effects of market volatilities on KTAM Gold and KTAM SET 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 KTAM Gold with a short position of KTAM SET. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM Gold and KTAM SET.
Diversification Opportunities for KTAM Gold and KTAM SET
Pay attention - limited upside
The 3 months correlation between KTAM and KTAM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTAM Gold ETF and KTAM SET ICT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTAM SET ICT and KTAM Gold 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 KTAM Gold ETF are associated (or correlated) with KTAM SET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTAM SET ICT has no effect on the direction of KTAM Gold i.e., KTAM Gold and KTAM SET go up and down completely randomly.
Pair Corralation between KTAM Gold and KTAM SET
If you would invest (100.00) in KTAM SET ICT on August 29, 2024 and sell it today you would earn a total of 100.00 from holding KTAM SET ICT or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KTAM Gold ETF vs. KTAM SET ICT
Performance |
| Timeline |
| KTAM Gold ETF |
| KTAM SET ICT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KTAM Gold and KTAM SET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTAM Gold and KTAM SET
The main advantage of trading using opposite KTAM Gold and KTAM SET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTAM Gold position performs unexpectedly, KTAM SET 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 KTAM SET will offset losses from the drop in KTAM SET's long position.The idea behind KTAM Gold ETF and KTAM SET ICT 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.| KTAM SET vs. KTAM Gold ETF | KTAM SET vs. United Hero ETF | KTAM SET vs. BCAP SET100 | KTAM SET vs. WISE KTAM CSI |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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