Correlation Between Kinetics Spin-off and Nuveen Amt

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

By analyzing existing cross correlation between Kinetics Spin Off And and Nuveen Amt Free, you can compare the effects of market volatilities on Kinetics Spin-off and Nuveen Amt 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 Spin-off with a short position of Nuveen Amt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Spin-off and Nuveen Amt.

Diversification Opportunities for Kinetics Spin-off and Nuveen Amt

0.61

Correlation Coefficient

Kinetics Spin-off  Nuveen Amt

Poor diversification

The 3 months correlation between Kinetics and Nuveen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Spin Off And and Nuveen Amt Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free and Kinetics Spin-off 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 Spin Off And are associated (or correlated) with Nuveen Amt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of Kinetics Spin-off i.e., Kinetics Spin-off and Nuveen Amt go up and down completely randomly.

Pair Corralation between Kinetics Spin-off and Nuveen Amt

Assuming the 90 days horizon Kinetics Spin Off And is expected to under-perform the Nuveen Amt. In addition to that, Kinetics Spin-off is 4.03 times more volatile than Nuveen Amt Free. It trades about -0.04 of its total potential returns per unit of risk. Nuveen Amt Free is currently generating about -0.01 per unit of volatility. If you would invest  1,300  in Nuveen Amt Free on December 1, 2024 and sell it today you would lose (9.00) from holding Nuveen Amt Free or give up 0.69% of portfolio value over 90 days.

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

Kinetics Spin Off And  vs.  Nuveen Amt Free

Kinetics Spin Off

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinetics Spin Off And 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.

Nuveen Amt Free

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Amt Free has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Nuveen Amt is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kinetics Spin-off and Nuveen Amt

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

The idea behind Kinetics Spin Off And and Nuveen Amt Free 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.