Two Equities Correlation Analysis
Specify exactly 2 symbols:
KSM-F46.TA
Add Two Equities
This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for KSM Mutual and NYSE Composite
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KSM and NYSE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of KSM Mutual i.e., KSM Mutual and NYSE Composite go up and down completely randomly.
Pair Corralation between KSM Mutual and NYSE Composite
Assuming the 90 days trading horizon KSM Mutual Funds is expected to under-perform the NYSE Composite. In addition to that, KSM Mutual is 5.55 times more volatile than NYSE Composite. It trades about -0.03 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.05 per unit of volatility. If you would invest 1,756,661 in NYSE Composite on January 26, 2024 and sell it today you would earn a total of 19,147 from holding NYSE Composite or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.19% |
| Values | Daily Returns |
KSM Mutual Funds vs. NYSE Composite
Performance |
| Timeline |
KSM Mutual and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
KSM Mutual Funds
Pair trading matchups for KSM Mutual
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with KSM Mutual and NYSE Composite
The main advantage of trading using opposite KSM Mutual and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite'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 |
| NYSE Composite vs. Aduro Clean Technologies | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Advanced Micro Devices | NYSE Composite vs. IPG Photonics |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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