Correlation Between Kinetics Market and Gamco Global

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

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

Diversification Opportunities for Kinetics Market and Gamco Global

0.23

Correlation Coefficient

Kinetics Market  Gamco Global

Modest diversification

The 3 months correlation between Kinetics and Gamco is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Gamco Global Telecommunication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Telecom and Kinetics Market 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 Market Opportunities are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Telecom has no effect on the direction of Kinetics Market i.e., Kinetics Market and Gamco Global go up and down completely randomly.

Pair Corralation between Kinetics Market and Gamco Global

Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 2.48 times more return on investment than Gamco Global. However, Kinetics Market is 2.48 times more volatile than Gamco Global Telecommunications. It trades about 0.08 of its potential returns per unit of risk. Gamco Global Telecommunications is currently generating about 0.08 per unit of risk. If you would invest  7,530  in Kinetics Market Opportunities on December 29, 2024 and sell it today you would earn a total of  689.00  from holding Kinetics Market Opportunities or generate 9.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Kinetics Market Opportunities  vs.  Gamco Global Telecommunication

Kinetics Market Oppo

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Market Opportunities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kinetics Market may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Gamco Global Telecom

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gamco Global Telecommunications are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Gamco Global 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 Market and Gamco Global

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

The idea behind Kinetics Market Opportunities and Gamco Global Telecommunications 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..