Correlation Between IMGP DBi and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both IMGP DBi and Horizon Kinetics 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 IMGP DBi and Horizon Kinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMGP DBi Managed and Horizon Kinetics Inflation, you can compare the effects of market volatilities on IMGP DBi and Horizon Kinetics 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 IMGP DBi with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and Horizon Kinetics.
Diversification Opportunities for IMGP DBi and Horizon Kinetics
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between IMGP and Horizon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and Horizon Kinetics Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Inf and IMGP DBi 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 iMGP DBi Managed are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Inf has no effect on the direction of IMGP DBi i.e., IMGP DBi and Horizon Kinetics go up and down completely randomly.
Pair Corralation between IMGP DBi and Horizon Kinetics
Given the investment horizon of 90 days iMGP DBi Managed is expected to under-perform the Horizon Kinetics. But the etf apears to be less risky and, when comparing its historical volatility, iMGP DBi Managed is 1.94 times less risky than Horizon Kinetics. The etf trades about -0.06 of its potential returns per unit of risk. The Horizon Kinetics Inflation is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,802 in Horizon Kinetics Inflation on December 28, 2024 and sell it today you would earn a total of 302.00 from holding Horizon Kinetics Inflation or generate 7.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
iMGP DBi Managed vs. Horizon Kinetics Inflation
Performance |
Timeline |
iMGP DBi Managed |
Horizon Kinetics Inf |
IMGP DBi and Horizon Kinetics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IMGP DBi and Horizon Kinetics
The main advantage of trading using opposite IMGP DBi and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMGP DBi position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' long position.IMGP DBi vs. KFA Mount Lucas | IMGP DBi vs. Simplify Exchange Traded | IMGP DBi vs. Simplify Interest Rate | IMGP DBi vs. First Trust Managed |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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