Correlation Between Kinetics Global and Nuveen Connecticut

Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Nuveen Connecticut 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 Nuveen Connecticut 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 Nuveen Necticut Municipal, you can compare the effects of market volatilities on Kinetics Global and Nuveen Connecticut 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 Nuveen Connecticut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Nuveen Connecticut.

Diversification Opportunities for Kinetics Global and Nuveen Connecticut

0.0

Correlation Coefficient

Kinetics Global  Nuveen Connecticut

Pay attention - limited upside

The 3 months correlation between Kinetics and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Nuveen Necticut Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Necticut Municipal 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 Nuveen Connecticut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Necticut Municipal has no effect on the direction of Kinetics Global i.e., Kinetics Global and Nuveen Connecticut go up and down completely randomly.

Pair Corralation between Kinetics Global and Nuveen Connecticut

If you would invest  1,469  in Kinetics Global Fund on December 21, 2024 and sell it today you would earn a total of  32.00  from holding Kinetics Global Fund or generate 2.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Kinetics Global Fund  vs.  Nuveen Necticut Municipal

Kinetics Global

Risk-Adjusted Performance

Weak

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

Nuveen Necticut Municipal

Risk-Adjusted Performance

Modest

Over the last 90 days Nuveen Necticut Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nuveen Connecticut 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 Nuveen Connecticut

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

The idea behind Kinetics Global Fund and Nuveen Necticut Municipal 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.