Correlation Between KSM Mutual and American Airlines
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By analyzing existing cross correlation between KSM Mutual Funds and American Airlines Group, you can compare the effects of market volatilities on KSM Mutual and American Airlines 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 American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and American Airlines.
Diversification Opportunities for KSM Mutual and American Airlines
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KSM and American is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of KSM Mutual i.e., KSM Mutual and American Airlines go up and down completely randomly.
Pair Corralation between KSM Mutual and American Airlines
Assuming the 90 days trading horizon KSM Mutual Funds is expected to generate 0.07 times more return on investment than American Airlines. However, KSM Mutual Funds is 13.49 times less risky than American Airlines. It trades about -0.39 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.1 per unit of risk. If you would invest 1,396,900 in KSM Mutual Funds on January 25, 2024 and sell it today you would lose (18,200) from holding KSM Mutual Funds or give up 1.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 77.27% |
Values | Daily Returns |
KSM Mutual Funds vs. American Airlines Group
Performance |
Timeline |
KSM Mutual Funds |
American Airlines |
KSM Mutual and American Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KSM Mutual and American Airlines
The main advantage of trading using opposite KSM Mutual and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, American Airlines 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 American Airlines will offset losses from the drop in American Airlines' 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 |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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