Correlation Between Harel Sal and KSM Mutual
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By analyzing existing cross correlation between Harel Sal SP and KSM Mutual Funds, you can compare the effects of market volatilities on Harel Sal 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 Harel Sal with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harel Sal and KSM Mutual.
Diversification Opportunities for Harel Sal and KSM Mutual
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Harel and KSM is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Harel Sal SP 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 Harel Sal 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 Harel Sal SP 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 Harel Sal i.e., Harel Sal and KSM Mutual go up and down completely randomly.
Pair Corralation between Harel Sal and KSM Mutual
Assuming the 90 days trading horizon Harel Sal is expected to generate 1.93 times less return on investment than KSM Mutual. But when comparing it to its historical volatility, Harel Sal SP is 2.68 times less risky than KSM Mutual. It trades about 0.15 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,728,000 in KSM Mutual Funds on August 29, 2024 and sell it today you would earn a total of 276,000 from holding KSM Mutual Funds or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harel Sal SP vs. KSM Mutual Funds
Performance |
| Timeline |
| Harel Sal SP |
| KSM Mutual Funds |
Harel Sal and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harel Sal and KSM Mutual
The main advantage of trading using opposite Harel Sal and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harel Sal 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.| Harel Sal vs. Harel Index Funds | Harel Sal vs. Harel Sal Tel Bond | Harel Sal vs. Harel Index Funds | Harel Sal vs. Harel Index 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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