Correlation Between Aquagold International and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Kinetics Global Fund, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Kinetics Global.
Diversification Opportunities for Aquagold International and Kinetics Global
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aquagold and Kinetics is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Aquagold International 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 Aquagold International 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 Aquagold International i.e., Aquagold International and Kinetics Global go up and down completely randomly.
Pair Corralation between Aquagold International and Kinetics Global
Given the investment horizon of 90 days Aquagold International is expected to generate 38.59 times more return on investment than Kinetics Global. However, Aquagold International is 38.59 times more volatile than Kinetics Global Fund. It trades about 0.06 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.12 per unit of risk. If you would invest 0.10 in Aquagold International on November 27, 2024 and sell it today you would lose (0.08) from holding Aquagold International or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.37% |
| Values | Daily Returns |
Aquagold International vs. Kinetics Global Fund
Performance |
| Timeline |
| Aquagold International |
| Kinetics Global |
Aquagold International and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Kinetics Global
The main advantage of trading using opposite Aquagold International and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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