Correlation Between KSM Mutual and Harel Index
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By analyzing existing cross correlation between KSM Mutual Funds and Harel Index Funds, you can compare the effects of market volatilities on KSM Mutual and Harel 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 Harel Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Harel Index.
Diversification Opportunities for KSM Mutual and Harel Index
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KSM and Harel is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Harel Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harel 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 Harel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harel Index Funds has no effect on the direction of KSM Mutual i.e., KSM Mutual and Harel Index go up and down completely randomly.
Pair Corralation between KSM Mutual and Harel Index
Assuming the 90 days trading horizon KSM Mutual Funds is expected to generate 0.74 times more return on investment than Harel Index. However, KSM Mutual Funds is 1.36 times less risky than Harel Index. It trades about 0.14 of its potential returns per unit of risk. Harel Index Funds is currently generating about 0.08 per unit of risk. If you would invest 298,300 in KSM Mutual Funds on August 25, 2024 and sell it today you would earn a total of 88,900 from holding KSM Mutual Funds or generate 29.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KSM Mutual Funds vs. Harel Index Funds
Performance |
| Timeline |
| KSM Mutual Funds |
| Harel Index Funds |
KSM Mutual and Harel Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSM Mutual and Harel Index
The main advantage of trading using opposite KSM Mutual and Harel Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, Harel 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 Harel Index will offset losses from the drop in Harel Index's long position.| KSM Mutual vs. Harel Index Funds | KSM Mutual vs. Harel Index Funds | KSM Mutual vs. Harel Index Funds | KSM Mutual vs. Harel Index Funds |
| Harel Index vs. Harel Index Funds | Harel Index vs. Harel Sal Tel Bond | Harel Index vs. Harel Index Funds | Harel Index 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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