Correlation Between Horizon Kinetics and IShares 1
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and IShares 1 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 IShares 1 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 iShares 1 5 Year, you can compare the effects of market volatilities on Horizon Kinetics and IShares 1 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 IShares 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and IShares 1.
Diversification Opportunities for Horizon Kinetics and IShares 1
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Horizon and IShares is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Inflation and iShares 1 5 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 1 5 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 IShares 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 1 5 has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and IShares 1 go up and down completely randomly.
Pair Corralation between Horizon Kinetics and IShares 1
Given the investment horizon of 90 days Horizon Kinetics Inflation is expected to generate 6.85 times more return on investment than IShares 1. However, Horizon Kinetics is 6.85 times more volatile than iShares 1 5 Year. It trades about 0.22 of its potential returns per unit of risk. iShares 1 5 Year is currently generating about 0.21 per unit of risk. If you would invest 3,268 in Horizon Kinetics Inflation on September 1, 2024 and sell it today you would earn a total of 998.00 from holding Horizon Kinetics Inflation or generate 30.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics Inflation vs. iShares 1 5 Year
Performance |
| Timeline |
| Horizon Kinetics Inf |
| iShares 1 5 |
Horizon Kinetics and IShares 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and IShares 1
The main advantage of trading using opposite Horizon Kinetics and IShares 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, IShares 1 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 IShares 1 will offset losses from the drop in IShares 1's long position.| Horizon Kinetics vs. Quadratic Interest Rate | Horizon Kinetics vs. Simplify Interest Rate | Horizon Kinetics vs. iShares Small Cap | Horizon Kinetics vs. Freedom 100 Emerging |
| IShares 1 vs. iShares 5 10 Year | IShares 1 vs. iShares 0 5 Year | IShares 1 vs. SPDR Barclays Short | IShares 1 vs. iShares Core Total |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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