Correlation Between Kinetics Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Eaton Vance 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 Eaton Vance 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 Eaton Vance Multi Asset, you can compare the effects of market volatilities on Kinetics Global and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Eaton Vance.
Diversification Opportunities for Kinetics Global and Eaton Vance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Eaton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Eaton Vance Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Multi has no effect on the direction of Kinetics Global i.e., Kinetics Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Kinetics Global and Eaton Vance
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 7.99 times more return on investment than Eaton Vance. However, Kinetics Global is 7.99 times more volatile than Eaton Vance Multi Asset. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Multi Asset is currently generating about 0.21 per unit of risk. If you would invest 772.00 in Kinetics Global Fund on September 12, 2024 and sell it today you would earn a total of 772.00 from holding Kinetics Global Fund or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Eaton Vance Multi Asset
Performance |
| Timeline |
| Kinetics Global |
| Eaton Vance Multi |
Kinetics Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Eaton Vance
The main advantage of trading using opposite Kinetics Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Kinetics Global vs. Pace Smallmedium Value | Kinetics Global vs. Small Pany Growth | Kinetics Global vs. Champlain Small | Kinetics Global vs. Glg Intl Small |
| Eaton Vance vs. Franklin Mutual Global | Eaton Vance vs. Jhancock Global Equity | Eaton Vance vs. Artisan Global Unconstrained | Eaton Vance vs. Kinetics Global Fund |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets |