Correlation Between Horizon Kinetics and Robo Global

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

By analyzing existing cross correlation between Horizon Kinetics Inflation and Robo Global Robotics, you can compare the effects of market volatilities on Horizon Kinetics and Robo Global 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 Horizon Kinetics with a short position of Robo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Robo Global.

Diversification Opportunities for Horizon Kinetics and Robo Global

0.04

Correlation Coefficient

Horizon Kinetics  Robo Global

Significant diversification

The 3 months correlation between Horizon and Robo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Inflation and Robo Global Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robo Global Robotics and Horizon Kinetics 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 Horizon Kinetics Inflation are associated (or correlated) with Robo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robo Global Robotics has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and Robo Global go up and down completely randomly.

Pair Corralation between Horizon Kinetics and Robo Global

Given the investment horizon of 90 days Horizon Kinetics Inflation is expected to generate 0.77 times more return on investment than Robo Global. However, Horizon Kinetics Inflation is 1.3 times less risky than Robo Global. It trades about 0.1 of its potential returns per unit of risk. Robo Global Robotics is currently generating about -0.07 per unit of risk. If you would invest  3,786  in Horizon Kinetics Inflation on December 28, 2024 and sell it today you would earn a total of  266.00  from holding Horizon Kinetics Inflation or generate 7.03% return on investment over 90 days.

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

Horizon Kinetics Inflation  vs.  Robo Global Robotics

Horizon Kinetics Inf

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Kinetics Inflation are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, Horizon Kinetics may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Robo Global Robotics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robo Global Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's fundamental drivers remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Horizon Kinetics and Robo Global

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

The idea behind Horizon Kinetics Inflation and Robo Global Robotics 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.