Correlation Between Horizon Kinetics and CHIR

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

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

Diversification Opportunities for Horizon Kinetics and CHIR

0.0

Correlation Coefficient

Horizon Kinetics  CHIR

Pay attention - limited upside

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

Pair Corralation between Horizon Kinetics and CHIR

If you would invest  1,711  in CHIR on October 11, 2024 and sell it today you would earn a total of  0.00  from holding CHIR or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Horizon Kinetics Medical  vs.  CHIR

Horizon Kinetics Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Horizon Kinetics Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Etf's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

CHIR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHIR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, CHIR is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Horizon Kinetics and CHIR

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

The idea behind Horizon Kinetics Medical and CHIR 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.