Correlation Between Income Fund and KFT
Can any of the company-specific risk be diversified away by investing in both Income Fund and KFT 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 Income Fund and KFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Fund Of and KFT, you can compare the effects of market volatilities on Income Fund and KFT 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 Income Fund with a short position of KFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Fund and KFT.
Diversification Opportunities for Income Fund and KFT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Income and KFT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Income Fund Of and KFT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KFT and Income Fund 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 Income Fund Of are associated (or correlated) with KFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KFT has no effect on the direction of Income Fund i.e., Income Fund and KFT go up and down completely randomly.
Pair Corralation between Income Fund and KFT
If you would invest (100.00) in KFT on January 21, 2024 and sell it today you would earn a total of 100.00 from holding KFT 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 |
Income Fund Of vs. KFT
Performance |
Timeline |
Income Fund |
KFT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Income Fund and KFT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Income Fund and KFT
The main advantage of trading using opposite Income Fund and KFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Fund position performs unexpectedly, KFT 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 KFT will offset losses from the drop in KFT's long position.Income Fund vs. New World Fund | Income Fund vs. American Mutual Fund | Income Fund vs. American Mutual Fund | Income Fund vs. American Funds Income |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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