Correlation Between Aquila Three and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Aquila Three 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 Aquila Three and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquila Three Peaks and Kinetics Global Fund, you can compare the effects of market volatilities on Aquila Three 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 Aquila Three with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquila Three and Kinetics Global.
Diversification Opportunities for Aquila Three and Kinetics Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aquila and Kinetics is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aquila Three Peaks and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Aquila Three 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 Aquila Three Peaks 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 Aquila Three i.e., Aquila Three and Kinetics Global go up and down completely randomly.
Pair Corralation between Aquila Three and Kinetics Global
Assuming the 90 days horizon Aquila Three Peaks is expected to under-perform the Kinetics Global. In addition to that, Aquila Three is 2.6 times more volatile than Kinetics Global Fund. It trades about -0.21 of its total potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.02 per unit of volatility. If you would invest 1,536 in Kinetics Global Fund on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Kinetics Global Fund or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquila Three Peaks vs. Kinetics Global Fund
Performance |
| Timeline |
| Aquila Three Peaks |
| Kinetics Global |
Aquila Three and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquila Three and Kinetics Global
The main advantage of trading using opposite Aquila Three and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquila Three 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.| Aquila Three vs. Kinetics Global Fund | Aquila Three vs. Scharf Global Opportunity | Aquila Three vs. Siit Global Managed | Aquila Three vs. Investec Global Franchise |
| Kinetics Global vs. Lord Abbett Short | Kinetics Global vs. Easterly Snow Longshort | Kinetics Global vs. Boston Partners Longshort | Kinetics Global vs. Blackrock Short Term Inflat Protected |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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