Correlation Between KB Home and KSM Mutual
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By analyzing existing cross correlation between KB Home and KSM Mutual Funds, you can compare the effects of market volatilities on KB Home 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 KB Home with a short position of KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Home and KSM Mutual.
Diversification Opportunities for KB Home and KSM Mutual
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KBH and KSM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding KB Home 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 KB Home 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 KB Home 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 KB Home i.e., KB Home and KSM Mutual go up and down completely randomly.
Pair Corralation between KB Home and KSM Mutual
Considering the 90-day investment horizon KB Home is expected to generate 7.9 times more return on investment than KSM Mutual. However, KB Home is 7.9 times more volatile than KSM Mutual Funds. It trades about 0.07 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about -0.04 per unit of risk. If you would invest 3,228 in KB Home on January 26, 2024 and sell it today you would earn a total of 3,251 from holding KB Home or generate 100.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.79% |
| Values | Daily Returns |
KB Home vs. KSM Mutual Funds
Performance |
| Timeline |
| KB Home |
| KSM Mutual Funds |
KB Home and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Home and KSM Mutual
The main advantage of trading using opposite KB Home and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Home 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.| KB Home vs. Api GroupCorp | KB Home vs. MYR Group | KB Home vs. Comfort Systems USA | KB Home vs. Construction Partners |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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