Correlation Between Kinetics Market and Ocm Mutual

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

Diversification Opportunities for Kinetics Market and Ocm Mutual

-0.4

Correlation Coefficient

Kinetics Market  Ocm Mutual

Very good diversification

The 3 months correlation between Kinetics and Ocm is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Ocm Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocm Mutual Fund 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 Ocm Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocm Mutual Fund has no effect on the direction of Kinetics Market i.e., Kinetics Market and Ocm Mutual go up and down completely randomly.

Pair Corralation between Kinetics Market and Ocm Mutual

Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 0.88 times more return on investment than Ocm Mutual. However, Kinetics Market Opportunities is 1.14 times less risky than Ocm Mutual. It trades about 0.11 of its potential returns per unit of risk. Ocm Mutual Fund is currently generating about 0.05 per unit of risk. If you would invest  4,076  in Kinetics Market Opportunities on October 27, 2024 and sell it today you would earn a total of  4,790  from holding Kinetics Market Opportunities or generate 117.52% return on investment over 90 days.

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

Kinetics Market Opportunities  vs.  Ocm Mutual Fund

Kinetics Market Oppo

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Market Opportunities are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kinetics Market showed solid returns over the last few months and may actually be approaching a breakup point.

Ocm Mutual Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocm Mutual Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Kinetics Market and Ocm Mutual

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

The idea behind Kinetics Market Opportunities and Ocm Mutual Fund 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 Transaction History module to view history of all your transactions and understand their impact on performance.