Correlation Between Kinetics Small and Pnc Bond

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

By analyzing existing cross correlation between Kinetics Small Cap and Pnc Bond Fund, you can compare the effects of market volatilities on Kinetics Small and Pnc Bond 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 Small with a short position of Pnc Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Pnc Bond.

Diversification Opportunities for Kinetics Small and Pnc Bond

0.0

Correlation Coefficient

Kinetics Small  Pnc Bond

Pay attention - limited upside

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

Pair Corralation between Kinetics Small and Pnc Bond

If you would invest  12,537  in Kinetics Small Cap on October 12, 2024 and sell it today you would earn a total of  6,401  from holding Kinetics Small Cap or generate 51.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kinetics Small Cap  vs.  Pnc Bond Fund

Kinetics Small Cap

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Small Cap are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kinetics Small may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pnc Bond Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pnc Bond Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Pnc Bond 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 Small and Pnc Bond

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

The idea behind Kinetics Small Cap and Pnc Bond 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.