Correlation Between ICL Israel and KSM Mutual
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By analyzing existing cross correlation between ICL Israel Chemicals and KSM Mutual Funds, you can compare the effects of market volatilities on ICL Israel 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 ICL Israel with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and KSM Mutual.
Diversification Opportunities for ICL Israel and KSM Mutual
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICL and KSM is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals 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 ICL Israel 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 ICL Israel Chemicals 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 ICL Israel i.e., ICL Israel and KSM Mutual go up and down completely randomly.
Pair Corralation between ICL Israel and KSM Mutual
Assuming the 90 days trading horizon ICL Israel Chemicals is expected to under-perform the KSM Mutual. In addition to that, ICL Israel is 8.36 times more volatile than KSM Mutual Funds. It trades about -0.01 of its total potential returns per unit of risk. KSM Mutual Funds is currently generating about 0.12 per unit of volatility. If you would invest 364,098 in KSM Mutual Funds on September 4, 2024 and sell it today you would earn a total of 34,316 from holding KSM Mutual Funds or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICL Israel Chemicals vs. KSM Mutual Funds
Performance |
| Timeline |
| ICL Israel Chemicals |
| KSM Mutual Funds |
ICL Israel and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and KSM Mutual
The main advantage of trading using opposite ICL Israel and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel 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.| ICL Israel vs. Elbit Systems | ICL Israel vs. Bezeq Israeli Telecommunication | ICL Israel vs. Bank Hapoalim | ICL Israel vs. Teva Pharmaceutical Industries |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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