Correlation Between Kinetics Global and Ab Global
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Ab 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 Kinetics Global and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Global Fund and Ab Global Risk, you can compare the effects of market volatilities on Kinetics Global and Ab 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 Kinetics Global with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Ab Global.
Diversification Opportunities for Kinetics Global and Ab Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinetics and CABIX is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk and Kinetics Global 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 Kinetics Global Fund are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Kinetics Global i.e., Kinetics Global and Ab Global go up and down completely randomly.
Pair Corralation between Kinetics Global and Ab Global
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 5.41 times more return on investment than Ab Global. However, Kinetics Global is 5.41 times more volatile than Ab Global Risk. It trades about 0.5 of its potential returns per unit of risk. Ab Global Risk is currently generating about 0.37 per unit of risk. If you would invest 1,345 in Kinetics Global Fund on September 2, 2024 and sell it today you would earn a total of 301.00 from holding Kinetics Global Fund or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Ab Global Risk
Performance |
| Timeline |
| Kinetics Global |
| Ab Global Risk |
Kinetics Global and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Ab Global
The main advantage of trading using opposite Kinetics Global and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Ab 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 Ab Global will offset losses from the drop in Ab Global's long position.| Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Global Fund | Kinetics Global vs. Kinetics Internet Fund |
| Ab Global vs. Allianzgi Convertible Income | Ab Global vs. The Gamco Global | Ab Global vs. Harbor Vertible Securities | Ab Global vs. Advent Claymore Convertible |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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