Correlation Between Ancora/thelen Small-mid and Kinetics Small
Can any of the company-specific risk be diversified away by investing in both Ancora/thelen Small-mid and Kinetics Small 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 Ancora/thelen Small-mid and Kinetics Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ancorathelen Small Mid Cap and Kinetics Small Cap, you can compare the effects of market volatilities on Ancora/thelen Small-mid and Kinetics Small 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 Ancora/thelen Small-mid with a short position of Kinetics Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ancora/thelen Small-mid and Kinetics Small.
Diversification Opportunities for Ancora/thelen Small-mid and Kinetics Small
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ancora/thelen and Kinetics is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ancorathelen Small Mid Cap and Kinetics Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Small Cap and Ancora/thelen Small-mid 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 Ancorathelen Small Mid Cap are associated (or correlated) with Kinetics Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Small Cap has no effect on the direction of Ancora/thelen Small-mid i.e., Ancora/thelen Small-mid and Kinetics Small go up and down completely randomly.
Pair Corralation between Ancora/thelen Small-mid and Kinetics Small
Assuming the 90 days horizon Ancora/thelen Small-mid is expected to generate 44.8 times less return on investment than Kinetics Small. But when comparing it to its historical volatility, Ancorathelen Small Mid Cap is 1.99 times less risky than Kinetics Small. It trades about 0.01 of its potential returns per unit of risk. Kinetics Small Cap is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 17,398 in Kinetics Small Cap on December 1, 2024 and sell it today you would earn a total of 2,544 from holding Kinetics Small Cap or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ancorathelen Small Mid Cap vs. Kinetics Small Cap
Performance |
| Timeline |
| Ancora/thelen Small-mid |
| Kinetics Small Cap |
Ancora/thelen Small-mid and Kinetics Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ancora/thelen Small-mid and Kinetics Small
The main advantage of trading using opposite Ancora/thelen Small-mid and Kinetics Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ancora/thelen Small-mid position performs unexpectedly, Kinetics Small 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 Small will offset losses from the drop in Kinetics Small's long position.| Ancora/thelen Small-mid vs. Calvert Large Cap | Ancora/thelen Small-mid vs. Fidelity Large Cap | Ancora/thelen Small-mid vs. Siit Large Cap | Ancora/thelen Small-mid vs. Vest Large Cap |
| Kinetics Small vs. Gabelli Gold Fund | Kinetics Small vs. Global Gold Fund | Kinetics Small vs. International Investors Gold | Kinetics Small vs. Fidelity Advisor Gold |
Check out your portfolio center.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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