Correlation Between KSM Mutual and Nice
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By analyzing existing cross correlation between KSM Mutual Funds and Nice, you can compare the effects of market volatilities on KSM Mutual and Nice 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 Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Nice.
Diversification Opportunities for KSM Mutual and Nice
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KSM and Nice is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice 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 Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of KSM Mutual i.e., KSM Mutual and Nice go up and down completely randomly.
Pair Corralation between KSM Mutual and Nice
Assuming the 90 days trading horizon KSM Mutual is expected to generate 3.31 times less return on investment than Nice. But when comparing it to its historical volatility, KSM Mutual Funds is 4.39 times less risky than Nice. It trades about 0.11 of its potential returns per unit of risk. Nice is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,099,000 in Nice on January 24, 2024 and sell it today you would earn a total of 713,000 from holding Nice or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KSM Mutual Funds vs. Nice
Performance |
| Timeline |
| KSM Mutual Funds |
| Nice |
KSM Mutual and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KSM Mutual and Nice
The main advantage of trading using opposite KSM Mutual and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's 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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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