Correlation Between KSM Mutual and Apple

Can any of the company-specific risk be diversified away by investing in both KSM Mutual and Apple at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KSM Mutual and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KSM Mutual Funds and Apple Inc, you can compare the effects of market volatilities on KSM Mutual and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Apple.

Diversification Opportunities for KSM Mutual and Apple

0.0

Correlation Coefficient

KSM Mutual  Apple

Pay attention - limited upside

The 3 months correlation between KSM and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of KSM Mutual i.e., KSM Mutual and Apple go up and down completely randomly.

Pair Corralation between KSM Mutual and Apple

If you would invest  17,050  in Apple Inc on March 8, 2024 and sell it today you would earn a total of  2,537  from holding Apple Inc or generate 14.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

KSM Mutual Funds  vs.  Apple Inc

KSM Mutual Funds

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days KSM Mutual Funds has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, KSM Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Apple Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Apple disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KSM Mutual and Apple

The main advantage of trading using opposite KSM Mutual and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KSM Mutual position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.

The idea behind KSM Mutual Funds and Apple Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.