Correlation Between KSM Mutual and Psagot Index
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By analyzing existing cross correlation between KSM Mutual Funds and Psagot Index Funds, you can compare the effects of market volatilities on KSM Mutual and Psagot Index 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 KSM Mutual with a short position of Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Psagot Index.
Diversification Opportunities for KSM Mutual and Psagot Index
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KSM and Psagot is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds and KSM Mutual 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 KSM Mutual Funds are associated (or correlated) with Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of KSM Mutual i.e., KSM Mutual and Psagot Index go up and down completely randomly.
Pair Corralation between KSM Mutual and Psagot Index
Assuming the 90 days trading horizon KSM Mutual Funds is expected to generate 3.09 times more return on investment than Psagot Index. However, KSM Mutual is 3.09 times more volatile than Psagot Index Funds. It trades about 0.14 of its potential returns per unit of risk. Psagot Index Funds is currently generating about 0.17 per unit of risk. If you would invest 731,600 in KSM Mutual Funds on September 4, 2024 and sell it today you would earn a total of 239,700 from holding KSM Mutual Funds or generate 32.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.56% |
| Values | Daily Returns |
KSM Mutual Funds vs. Psagot Index Funds
Performance |
| Timeline |
| KSM Mutual Funds |
| Psagot Index Funds |
KSM Mutual and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSM Mutual and Psagot Index
The main advantage of trading using opposite KSM Mutual and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index's long position.| KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds |
| Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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