Correlation Between Kinetics Global and Tiaa Cref

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

Diversification Opportunities for Kinetics Global and Tiaa Cref

0.53

Correlation Coefficient

Kinetics Global  Tiaa Cref

Very weak diversification

The 3 months correlation between Kinetics and Tiaa is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Tiaa Cref International Opport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref International has no effect on the direction of Kinetics Global i.e., Kinetics Global and Tiaa Cref go up and down completely randomly.

Pair Corralation between Kinetics Global and Tiaa Cref

Assuming the 90 days horizon Kinetics Global Fund is expected to under-perform the Tiaa Cref. In addition to that, Kinetics Global is 1.43 times more volatile than Tiaa Cref International Opportunities. It trades about -0.07 of its total potential returns per unit of risk. Tiaa Cref International Opportunities is currently generating about -0.02 per unit of volatility. If you would invest  1,536  in Tiaa Cref International Opportunities on December 3, 2024 and sell it today you would lose (19.00) from holding Tiaa Cref International Opportunities or give up 1.24% of portfolio value over 90 days.

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

Kinetics Global Fund  vs.  Tiaa Cref International Opport

Kinetics Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinetics Global Fund has generated negative risk-adjusted returns adding no value to fund investors. 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.

Tiaa Cref International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tiaa Cref International Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Tiaa Cref 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 Tiaa Cref

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

The idea behind Kinetics Global Fund and Tiaa Cref International Opportunities 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.