Correlation Between KTBST Mixed and Dow Jones
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By analyzing existing cross correlation between KTBST Mixed Leasehold and Dow Jones Industrial, you can compare the effects of market volatilities on KTBST Mixed and Dow Jones 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 KTBST Mixed with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTBST Mixed and Dow Jones.
Diversification Opportunities for KTBST Mixed and Dow Jones
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KTBST and Dow is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding KTBST Mixed Leasehold and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and KTBST Mixed 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 KTBST Mixed Leasehold are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of KTBST Mixed i.e., KTBST Mixed and Dow Jones go up and down completely randomly.
Pair Corralation between KTBST Mixed and Dow Jones
Assuming the 90 days trading horizon KTBST Mixed Leasehold is expected to generate 1.59 times more return on investment than Dow Jones. However, KTBST Mixed is 1.59 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 571.00 in KTBST Mixed Leasehold on August 25, 2024 and sell it today you would earn a total of 79.00 from holding KTBST Mixed Leasehold or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.26% |
| Values | Daily Returns |
KTBST Mixed Leasehold vs. Dow Jones Industrial
Performance |
| Timeline |
KTBST Mixed and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
KTBST Mixed Leasehold
Pair trading matchups for KTBST Mixed
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with KTBST Mixed and Dow Jones
The main advantage of trading using opposite KTBST Mixed and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTBST Mixed position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| KTBST Mixed vs. Ticon Freehold and | KTBST Mixed vs. CPN Retail Growth | KTBST Mixed vs. Golden Ventures Leasehold | KTBST Mixed vs. Impact Growth REIT |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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