Correlation Between Kinetics Global and Crawford Multi

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

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

Diversification Opportunities for Kinetics Global and Crawford Multi

0.11

Correlation Coefficient

Kinetics Global  Crawford Multi

Average diversification

The 3 months correlation between Kinetics and Crawford is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Crawford Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crawford Multi Asset and Kinetics Global 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 Kinetics Global Fund are associated (or correlated) with Crawford Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crawford Multi Asset has no effect on the direction of Kinetics Global i.e., Kinetics Global and Crawford Multi go up and down completely randomly.

Pair Corralation between Kinetics Global and Crawford Multi

Assuming the 90 days horizon Kinetics Global Fund is expected to generate 2.51 times more return on investment than Crawford Multi. However, Kinetics Global is 2.51 times more volatile than Crawford Multi Asset Income. It trades about 0.11 of its potential returns per unit of risk. Crawford Multi Asset Income is currently generating about 0.06 per unit of risk. If you would invest  757.00  in Kinetics Global Fund on September 29, 2024 and sell it today you would earn a total of  726.00  from holding Kinetics Global Fund or generate 95.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Kinetics Global Fund  vs.  Crawford Multi Asset Income

Kinetics Global

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Global Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Kinetics Global showed solid returns over the last few months and may actually be approaching a breakup point.

Crawford Multi Asset

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crawford Multi Asset Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Crawford Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kinetics Global and Crawford Multi

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

The idea behind Kinetics Global Fund and Crawford Multi Asset Income 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.