Correlation Between Dreyfus Active and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Dreyfus 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 Dreyfus 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 Dreyfus Active Midcap and Kinetics Global Fund, you can compare the effects of market volatilities on Dreyfus 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 Dreyfus Active with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Active and Kinetics Global.
Diversification Opportunities for Dreyfus Active and Kinetics Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dreyfus and Kinetics is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Active Midcap and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Dreyfus 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 Dreyfus Active Midcap 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 Dreyfus Active i.e., Dreyfus Active and Kinetics Global go up and down completely randomly.
Pair Corralation between Dreyfus Active and Kinetics Global
Assuming the 90 days horizon Dreyfus Active is expected to generate 2.65 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Dreyfus Active Midcap is 1.29 times less risky than Kinetics Global. It trades about 0.06 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 847.00 in Kinetics Global Fund on August 30, 2024 and sell it today you would earn a total of 972.00 from holding Kinetics Global Fund or generate 114.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Active Midcap vs. Kinetics Global Fund
Performance |
| Timeline |
| Dreyfus Active Midcap |
| Kinetics Global |
Dreyfus Active and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Active and Kinetics Global
The main advantage of trading using opposite Dreyfus Active and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus 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.| Dreyfus Active vs. Kinetics Global Fund | Dreyfus Active vs. T Rowe Price | Dreyfus Active vs. Barings Global Floating | Dreyfus Active vs. Dreyfusstandish Global Fixed |
| Kinetics Global vs. American Balanced Fund | Kinetics Global vs. American Balanced Fund | Kinetics Global vs. HUMANA INC | Kinetics Global vs. Aquagold International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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