Correlation Between KSM Mutual and Kafrit
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By analyzing existing cross correlation between KSM Mutual Funds and Kafrit, you can compare the effects of market volatilities on KSM Mutual and Kafrit 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 Kafrit. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Kafrit.
Diversification Opportunities for KSM Mutual and Kafrit
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KSM and Kafrit is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Kafrit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kafrit 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 Kafrit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kafrit has no effect on the direction of KSM Mutual i.e., KSM Mutual and Kafrit go up and down completely randomly.
Pair Corralation between KSM Mutual and Kafrit
Assuming the 90 days trading horizon KSM Mutual Funds is expected to generate 0.05 times more return on investment than Kafrit. However, KSM Mutual Funds is 19.03 times less risky than Kafrit. It trades about 0.64 of its potential returns per unit of risk. Kafrit is currently generating about 0.03 per unit of risk. If you would invest 391,473 in KSM Mutual Funds on September 1, 2024 and sell it today you would earn a total of 6,372 from holding KSM Mutual Funds or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KSM Mutual Funds vs. Kafrit
Performance |
| Timeline |
| KSM Mutual Funds |
| Kafrit |
KSM Mutual and Kafrit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSM Mutual and Kafrit
The main advantage of trading using opposite KSM Mutual and Kafrit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, Kafrit 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 Kafrit will offset losses from the drop in Kafrit'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 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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