Correlation Between Kinetics Global and Dreyfus Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Dreyfus 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 Kinetics Global and Dreyfus Global 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 Dreyfus Global Real, you can compare the effects of market volatilities on Kinetics Global and Dreyfus 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 Kinetics Global with a short position of Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Dreyfus Global.

Diversification Opportunities for Kinetics Global and Dreyfus Global

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kinetics and Dreyfus is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Dreyfus Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Global Real 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 Dreyfus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Global Real has no effect on the direction of Kinetics Global i.e., Kinetics Global and Dreyfus Global go up and down completely randomly.

Pair Corralation between Kinetics Global and Dreyfus Global

Assuming the 90 days horizon Kinetics Global Fund is expected to generate 3.2 times more return on investment than Dreyfus Global. However, Kinetics Global is 3.2 times more volatile than Dreyfus Global Real. It trades about 0.2 of its potential returns per unit of risk. Dreyfus Global Real is currently generating about 0.04 per unit of risk. If you would invest  1,318  in Kinetics Global Fund on October 24, 2024 and sell it today you would earn a total of  278.00  from holding Kinetics Global Fund or generate 21.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kinetics Global Fund  vs.  Dreyfus Global Real

 Performance 
       Timeline  
Kinetics Global 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
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.
Dreyfus Global Real 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Dreyfus Global Real are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dreyfus Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinetics Global and Dreyfus Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kinetics Global and Dreyfus Global

The main advantage of trading using opposite Kinetics Global and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Dreyfus 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 Dreyfus Global will offset losses from the drop in Dreyfus Global's long position.
The idea behind Kinetics Global Fund and Dreyfus Global Real 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.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Commodity Directory
Find actively traded commodities issued by global exchanges
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years