Correlation Between KSM Mutual and Mivne Real

Can any of the company-specific risk be diversified away by investing in both KSM Mutual and Mivne Real 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 Mivne Real 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 Mivne Real Estate, you can compare the effects of market volatilities on KSM Mutual and Mivne Real 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 Mivne Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of KSM Mutual and Mivne Real.

Diversification Opportunities for KSM Mutual and Mivne Real

-0.93

Correlation Coefficient

KSM Mutual  Mivne Real

Pay attention - limited upside

The 3 months correlation between KSM and Mivne is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding KSM Mutual Funds and Mivne Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mivne Real Estate 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 Mivne Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mivne Real Estate has no effect on the direction of KSM Mutual i.e., KSM Mutual and Mivne Real go up and down completely randomly.

Pair Corralation between KSM Mutual and Mivne Real

Assuming the 90 days trading horizon KSM Mutual Funds is expected to under-perform the Mivne Real. But the etf apears to be less risky and, when comparing its historical volatility, KSM Mutual Funds is 1.56 times less risky than Mivne Real. The etf trades about -0.27 of its potential returns per unit of risk. The Mivne Real Estate is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  88,628  in Mivne Real Estate on September 16, 2024 and sell it today you would earn a total of  21,972  from holding Mivne Real Estate or generate 24.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

KSM Mutual Funds  vs.  Mivne Real Estate

KSM Mutual Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KSM Mutual Funds has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Mivne Real Estate

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mivne Real Estate are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mivne Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KSM Mutual and Mivne Real

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

The idea behind KSM Mutual Funds and Mivne Real Estate 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.