Correlation Between Ab Global and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Ab Global and Kinetics Global 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 Ab Global and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Bond and Kinetics Global Fund, you can compare the effects of market volatilities on Ab Global and Kinetics Global 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 Ab Global with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Kinetics Global.
Diversification Opportunities for Ab Global and Kinetics Global
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANAZX and Kinetics is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Ab 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 Ab Global Bond are associated (or correlated) with Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Ab Global i.e., Ab Global and Kinetics Global go up and down completely randomly.
Pair Corralation between Ab Global and Kinetics Global
Assuming the 90 days horizon Ab Global is expected to generate 10.59 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Ab Global Bond is 4.27 times less risky than Kinetics Global. It trades about 0.06 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 819.00 in Kinetics Global Fund on September 1, 2024 and sell it today you would earn a total of 990.00 from holding Kinetics Global Fund or generate 120.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Ab Global Bond vs. Kinetics Global Fund
Performance |
| Timeline |
| Ab Global Bond |
| Kinetics Global |
Ab Global and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Kinetics Global
The main advantage of trading using opposite Ab Global and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Kinetics Global 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 Global will offset losses from the drop in Kinetics Global's long position.| Ab Global vs. Dodge Cox Stock | Ab Global vs. Fidelity Series 1000 | Ab Global vs. Qs Large Cap | Ab Global vs. Aqr Large Cap |
| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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