Correlation Between Caterpillar and KSM Mutual
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By analyzing existing cross correlation between Caterpillar and KSM Mutual Funds, you can compare the effects of market volatilities on Caterpillar 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 Caterpillar with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and KSM Mutual.
Diversification Opportunities for Caterpillar and KSM Mutual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caterpillar and KSM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar 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 Caterpillar 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 Caterpillar 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 Caterpillar i.e., Caterpillar and KSM Mutual go up and down completely randomly.
Pair Corralation between Caterpillar and KSM Mutual
If you would invest 35,466 in Caterpillar on January 25, 2024 and sell it today you would earn a total of 905.00 from holding Caterpillar or generate 2.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Caterpillar vs. KSM Mutual Funds
Performance |
Timeline |
Caterpillar |
KSM Mutual Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Caterpillar and KSM Mutual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caterpillar and KSM Mutual
The main advantage of trading using opposite Caterpillar and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar 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.Caterpillar vs. NikolaCorp | Caterpillar vs. Ideanomics | Caterpillar vs. Lion Electric Corp | Caterpillar vs. Wabash National |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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