Correlation Between Boston Partners and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Kinetics Global Fund, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Kinetics Global.
Diversification Opportunities for Boston Partners and Kinetics Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Kinetics is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Boston Partners 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 Boston Partners Longshort 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 Boston Partners i.e., Boston Partners and Kinetics Global go up and down completely randomly.
Pair Corralation between Boston Partners and Kinetics Global
Assuming the 90 days horizon Boston Partners is expected to generate 5.55 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Boston Partners Longshort is 2.16 times less risky than Kinetics Global. It trades about 0.04 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Kinetics Global Fund on September 13, 2024 and sell it today you would earn a total of 747.00 from holding Kinetics Global Fund or generate 93.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. Kinetics Global Fund
Performance |
| Timeline |
| Boston Partners Longshort |
| Kinetics Global |
Boston Partners and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Kinetics Global
The main advantage of trading using opposite Boston Partners and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aqr Managed Futures | Boston Partners vs. Neuberger Berman Long | Boston Partners vs. Asg Managed Futures | Boston Partners vs. Marketfield Fund Marketfield |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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