Correlation Between IShares Core and KSM Mutual
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By analyzing existing cross correlation between iShares Core MSCI and KSM Mutual Funds, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and KSM Mutual.
Diversification Opportunities for IShares Core and KSM Mutual
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and KSM is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI 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 IShares Core 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 iShares Core MSCI 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 IShares Core i.e., IShares Core and KSM Mutual go up and down completely randomly.
Pair Corralation between IShares Core and KSM Mutual
Given the investment horizon of 90 days iShares Core MSCI is expected to generate 3.72 times more return on investment than KSM Mutual. However, IShares Core is 3.72 times more volatile than KSM Mutual Funds. It trades about 0.03 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about -0.22 per unit of risk. If you would invest 6,493 in iShares Core MSCI on January 25, 2024 and sell it today you would earn a total of 57.00 from holding iShares Core MSCI or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.42% |
| Values | Daily Returns |
iShares Core MSCI vs. KSM Mutual Funds
Performance |
| Timeline |
| iShares Core MSCI |
| KSM Mutual Funds |
IShares Core and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and KSM Mutual
The main advantage of trading using opposite IShares Core and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. SPDR MSCI Emerging | IShares Core vs. SPDR MSCI USA | IShares Core vs. SPDR MSCI World | IShares Core vs. SPDR SSGA Large |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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