Correlation Between MicroSectors FANG and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both MicroSectors FANG and Kelly Strategic 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 MicroSectors FANG and Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MicroSectors FANG ETN and Kelly Strategic Management, you can compare the effects of market volatilities on MicroSectors FANG and Kelly Strategic 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 MicroSectors FANG with a short position of Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroSectors FANG and Kelly Strategic.
Diversification Opportunities for MicroSectors FANG and Kelly Strategic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MicroSectors and Kelly is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MicroSectors FANG ETN and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana and MicroSectors FANG 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 MicroSectors FANG ETN are associated (or correlated) with Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of MicroSectors FANG i.e., MicroSectors FANG and Kelly Strategic go up and down completely randomly.
Pair Corralation between MicroSectors FANG and Kelly Strategic
If you would invest 5,052 in MicroSectors FANG ETN on September 3, 2024 and sell it today you would earn a total of 392.00 from holding MicroSectors FANG ETN or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
MicroSectors FANG ETN vs. Kelly Strategic Management
Performance |
| Timeline |
| MicroSectors FANG ETN |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MicroSectors FANG and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroSectors FANG and Kelly Strategic
The main advantage of trading using opposite MicroSectors FANG and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroSectors FANG position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.| MicroSectors FANG vs. Vanguard Information Technology | MicroSectors FANG vs. Technology Select Sector | MicroSectors FANG vs. iShares Technology ETF | MicroSectors FANG vs. VanEck Semiconductor ETF |
| Kelly Strategic vs. Vanguard Real Estate | Kelly Strategic vs. Howard Hughes | Kelly Strategic vs. The Real Estate | Kelly Strategic vs. Site Centers Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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