Correlation Between Dunham Large and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Dunham Large 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 Dunham Large and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and Kinetics Global Fund, you can compare the effects of market volatilities on Dunham Large 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 Dunham Large with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Kinetics Global.
Diversification Opportunities for Dunham Large and Kinetics Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Kinetics is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Dunham Large 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 Dunham Large Cap 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 Dunham Large i.e., Dunham Large and Kinetics Global go up and down completely randomly.
Pair Corralation between Dunham Large and Kinetics Global
Assuming the 90 days horizon Dunham Large Cap is expected to under-perform the Kinetics Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dunham Large Cap is 4.46 times less risky than Kinetics Global. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Kinetics Global Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,510 in Kinetics Global Fund on September 15, 2024 and sell it today you would earn a total of 29.00 from holding Kinetics Global Fund or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Kinetics Global Fund
Performance |
| Timeline |
| Dunham Large Cap |
| Kinetics Global |
Dunham Large and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Kinetics Global
The main advantage of trading using opposite Dunham Large and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large 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.| Dunham Large vs. Dunham Dynamic Macro | Dunham Large vs. Dunham Appreciation Income | Dunham Large vs. Dunham Porategovernment Bond | Dunham Large vs. Dunham Small Cap |
| Kinetics Global vs. Lord Abbett Affiliated | Kinetics Global vs. Dunham Large Cap | Kinetics Global vs. Virtus Nfj Large Cap | Kinetics Global vs. M Large 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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