Correlation Between KTAM SET and WISE KTAM

Can any of the company-specific risk be diversified away by investing in both KTAM SET and WISE KTAM 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 KTAM SET and WISE KTAM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KTAM SET ICT and WISE KTAM CSI, you can compare the effects of market volatilities on KTAM SET and WISE KTAM 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 KTAM SET with a short position of WISE KTAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTAM SET and WISE KTAM.

Diversification Opportunities for KTAM SET and WISE KTAM

0.0

Correlation Coefficient

KTAM SET  WISE KTAM

Pay attention - limited upside

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

Pair Corralation between KTAM SET and WISE KTAM

If you would invest (100.00) in KTAM SET ICT on October 22, 2024 and sell it today you would earn a total of  100.00  from holding KTAM SET ICT or generate -100.0% return on investment over 90 days.

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

KTAM SET ICT  vs.  WISE KTAM CSI

KTAM SET ICT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTAM SET ICT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, KTAM SET is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

WISE KTAM CSI

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with KTAM SET and WISE KTAM

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

The idea behind KTAM SET ICT and WISE KTAM CSI 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.