Correlation Between KSM Mutual and Elbit Systems
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By analyzing existing cross correlation between KSM Mutual Funds and Elbit Systems, you can compare the effects of market volatilities on KSM Mutual and Elbit Systems 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 Elbit Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Elbit Systems.
Diversification Opportunities for KSM Mutual and Elbit Systems
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KSM and Elbit is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Elbit Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Systems 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 Elbit Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Systems has no effect on the direction of KSM Mutual i.e., KSM Mutual and Elbit Systems go up and down completely randomly.
Pair Corralation between KSM Mutual and Elbit Systems
Assuming the 90 days trading horizon KSM Mutual Funds is expected to generate 0.53 times more return on investment than Elbit Systems. However, KSM Mutual Funds is 1.9 times less risky than Elbit Systems. It trades about 0.07 of its potential returns per unit of risk. Elbit Systems is currently generating about 0.01 per unit of risk. If you would invest 685,900 in KSM Mutual Funds on January 24, 2024 and sell it today you would earn a total of 161,200 from holding KSM Mutual Funds or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.44% |
| Values | Daily Returns |
KSM Mutual Funds vs. Elbit Systems
Performance |
| Timeline |
| KSM Mutual Funds |
| Elbit Systems |
KSM Mutual and Elbit Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSM Mutual and Elbit Systems
The main advantage of trading using opposite KSM Mutual and Elbit Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, Elbit Systems 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 Elbit Systems will offset losses from the drop in Elbit Systems' 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 |
| Elbit Systems vs. Nice | Elbit Systems vs. Bank Leumi Le Israel | Elbit Systems vs. Teva Pharmaceutical Industries | Elbit Systems vs. Bank Hapoalim |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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