Correlation Between Kafrit and KSM Mutual
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By analyzing existing cross correlation between Kafrit and KSM Mutual Funds, you can compare the effects of market volatilities on Kafrit 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 Kafrit with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kafrit and KSM Mutual.
Diversification Opportunities for Kafrit and KSM Mutual
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kafrit and KSM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kafrit 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 Kafrit 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 Kafrit 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 Kafrit i.e., Kafrit and KSM Mutual go up and down completely randomly.
Pair Corralation between Kafrit and KSM Mutual
Assuming the 90 days trading horizon Kafrit is expected to generate 24.44 times more return on investment than KSM Mutual. However, Kafrit is 24.44 times more volatile than KSM Mutual Funds. It trades about 0.08 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about 0.21 per unit of risk. If you would invest 323,900 in Kafrit on November 22, 2024 and sell it today you would earn a total of 12,400 from holding Kafrit or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kafrit vs. KSM Mutual Funds
Performance |
| Timeline |
| Kafrit |
| KSM Mutual Funds |
Kafrit and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kafrit and KSM Mutual
The main advantage of trading using opposite Kafrit and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kafrit 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.The idea behind Kafrit and KSM Mutual Funds 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.| KSM Mutual vs. Harel Index Funds | KSM Mutual vs. Harel Index Funds | KSM Mutual vs. Harel Index Funds | KSM Mutual 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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