Correlation Between Kinetics Global and The Hartford
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and The Hartford 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 The Hartford 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 The Hartford Global, you can compare the effects of market volatilities on Kinetics Global and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and The Hartford.
Diversification Opportunities for Kinetics Global and The Hartford
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and THE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and The Hartford Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global has no effect on the direction of Kinetics Global i.e., Kinetics Global and The Hartford go up and down completely randomly.
Pair Corralation between Kinetics Global and The Hartford
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 3.15 times more return on investment than The Hartford. However, Kinetics Global is 3.15 times more volatile than The Hartford Global. It trades about 0.45 of its potential returns per unit of risk. The Hartford Global is currently generating about -0.15 per unit of risk. If you would invest 1,235 in Kinetics Global Fund on August 28, 2024 and sell it today you would earn a total of 397.00 from holding Kinetics Global Fund or generate 32.15% 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. The Hartford Global
Performance |
| Timeline |
| Kinetics Global |
| Hartford Global |
Kinetics Global and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and The Hartford
The main advantage of trading using opposite Kinetics Global and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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