Correlation Between Horizon Kinetics and Cambiar Aggressive
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and Cambiar Aggressive 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 Horizon Kinetics and Cambiar Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics Inflation and Cambiar Aggressive Value, you can compare the effects of market volatilities on Horizon Kinetics and Cambiar Aggressive 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 Horizon Kinetics with a short position of Cambiar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Cambiar Aggressive.
Diversification Opportunities for Horizon Kinetics and Cambiar Aggressive
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Horizon and Cambiar is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Inflation and Cambiar Aggressive Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Aggressive Value and Horizon Kinetics 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 Horizon Kinetics Inflation are associated (or correlated) with Cambiar Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Aggressive Value has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and Cambiar Aggressive go up and down completely randomly.
Pair Corralation between Horizon Kinetics and Cambiar Aggressive
Given the investment horizon of 90 days Horizon Kinetics Inflation is expected to generate 1.62 times more return on investment than Cambiar Aggressive. However, Horizon Kinetics is 1.62 times more volatile than Cambiar Aggressive Value. It trades about 0.31 of its potential returns per unit of risk. Cambiar Aggressive Value is currently generating about 0.29 per unit of risk. If you would invest 3,980 in Horizon Kinetics Inflation on September 3, 2024 and sell it today you would earn a total of 286.00 from holding Horizon Kinetics Inflation or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics Inflation vs. Cambiar Aggressive Value
Performance |
| Timeline |
| Horizon Kinetics Inf |
| Cambiar Aggressive Value |
Horizon Kinetics and Cambiar Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and Cambiar Aggressive
The main advantage of trading using opposite Horizon Kinetics and Cambiar Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, Cambiar Aggressive 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 Cambiar Aggressive will offset losses from the drop in Cambiar Aggressive's long position.| Horizon Kinetics vs. SPACE | Horizon Kinetics vs. Bayview Acquisition Corp | Horizon Kinetics vs. Ampleforth | Horizon Kinetics vs. ionet |
| Cambiar Aggressive vs. Horizon Kinetics Inflation | Cambiar Aggressive vs. Simplify Exchange Traded | Cambiar Aggressive vs. iMGP DBi Managed | Cambiar Aggressive vs. Quadratic Interest Rate |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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