Correlation Between Barings Active and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Barings Active 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 Barings Active and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Kinetics Global Fund, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Kinetics Global.
Diversification Opportunities for Barings Active and Kinetics Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and KINETICS is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Barings Active 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 Barings Active Short 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 Barings Active i.e., Barings Active and Kinetics Global go up and down completely randomly.
Pair Corralation between Barings Active and Kinetics Global
Assuming the 90 days horizon Barings Active is expected to generate 44.84 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Barings Active Short is 13.78 times less risky than Kinetics Global. It trades about 0.14 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 1,327 in Kinetics Global Fund on August 29, 2024 and sell it today you would earn a total of 280.00 from holding Kinetics Global Fund or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Kinetics Global Fund
Performance |
| Timeline |
| Barings Active Short |
| Kinetics Global |
Barings Active and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Kinetics Global
The main advantage of trading using opposite Barings Active and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Permanent Portfolio Class | Barings Active vs. HUMANA INC | Barings Active vs. Aquagold International | Barings Active vs. Barloworld Ltd ADR |
| Kinetics Global vs. Bbh Intermediate Municipal | Kinetics Global vs. Angel Oak Ultrashort | Kinetics Global vs. Nebraska Municipal Fund | Kinetics Global vs. Blrc Sgy Mnp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |