Correlation Between Eagle Mlp and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Eagle Mlp 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 Eagle Mlp and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mlp Strategy and Kinetics Global Fund, you can compare the effects of market volatilities on Eagle Mlp 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 Eagle Mlp with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Kinetics Global.
Diversification Opportunities for Eagle Mlp and Kinetics Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Kinetics is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Eagle Mlp 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 Eagle Mlp Strategy 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 Eagle Mlp i.e., Eagle Mlp and Kinetics Global go up and down completely randomly.
Pair Corralation between Eagle Mlp and Kinetics Global
Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 0.86 times more return on investment than Kinetics Global. However, Eagle Mlp Strategy is 1.16 times less risky than Kinetics Global. It trades about 0.61 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.41 per unit of risk. If you would invest 1,050 in Eagle Mlp Strategy on October 23, 2024 and sell it today you would earn a total of 124.00 from holding Eagle Mlp Strategy or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Eagle Mlp Strategy vs. Kinetics Global Fund
Performance |
| Timeline |
| Eagle Mlp Strategy |
| Kinetics Global |
Eagle Mlp and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mlp and Kinetics Global
The main advantage of trading using opposite Eagle Mlp and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp 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.| Eagle Mlp vs. Alliancebernstein Bond | Eagle Mlp vs. Blrc Sgy Mnp | Eagle Mlp vs. Enhanced Fixed Income | Eagle Mlp vs. Multisector Bond Sma |
| Kinetics Global vs. Dreyfusstandish Global Fixed | Kinetics Global vs. Federated High Yield | Kinetics Global vs. Multisector Bond Sma | Kinetics Global vs. Barings High Yield |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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