Correlation Between Kinetics Global and Kinetics Multi-disciplina

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

By analyzing existing cross correlation between Kinetics Global Fund and Kinetics Multi Disciplinary Income, you can compare the effects of market volatilities on Kinetics Global and Kinetics Multi-disciplina 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 Global with a short position of Kinetics Multi-disciplina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Kinetics Multi-disciplina.

Diversification Opportunities for Kinetics Global and Kinetics Multi-disciplina

0.95

Correlation Coefficient

Kinetics Global  Kinetics Multi-disciplina

Almost no diversification

The 3 months correlation between Kinetics and Kinetics is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Kinetics Multi Disciplinary In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Multi-disciplina and Kinetics Global 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 Global Fund are associated (or correlated) with Kinetics Multi-disciplina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Multi-disciplina has no effect on the direction of Kinetics Global i.e., Kinetics Global and Kinetics Multi-disciplina go up and down completely randomly.

Pair Corralation between Kinetics Global and Kinetics Multi-disciplina

Assuming the 90 days horizon Kinetics Global Fund is expected to generate 35.17 times more return on investment than Kinetics Multi-disciplina. However, Kinetics Global is 35.17 times more volatile than Kinetics Multi Disciplinary Income. It trades about 0.5 of its potential returns per unit of risk. Kinetics Multi Disciplinary Income is currently generating about 0.51 per unit of risk. If you would invest  1,477  in Kinetics Global Fund on September 2, 2024 and sell it today you would earn a total of  332.00  from holding Kinetics Global Fund or generate 22.48% return on investment over 90 days.

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

Kinetics Global Fund  vs.  Kinetics Multi Disciplinary In

Kinetics Global

Risk-Adjusted Performance

31 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Global Fund are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Kinetics Global showed solid returns over the last few months and may actually be approaching a breakup point.

Kinetics Multi-disciplina

Risk-Adjusted Performance

41 of 100

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Multi Disciplinary Income are ranked lower than 41 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Kinetics Multi-disciplina 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 Global and Kinetics Multi-disciplina

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

The idea behind Kinetics Global Fund and Kinetics Multi Disciplinary Income 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.