Correlation Between Kinetics Global and International Investors
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and International Investors 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 International Investors 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 International Investors Gold, you can compare the effects of market volatilities on Kinetics Global and International Investors 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 International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and International Investors.
Diversification Opportunities for Kinetics Global and International Investors
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and International is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors 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 International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Kinetics Global i.e., Kinetics Global and International Investors go up and down completely randomly.
Pair Corralation between Kinetics Global and International Investors
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 1.14 times more return on investment than International Investors. However, Kinetics Global is 1.14 times more volatile than International Investors Gold. It trades about 0.03 of its potential returns per unit of risk. International Investors Gold is currently generating about -0.02 per unit of risk. If you would invest 1,545 in Kinetics Global Fund on September 19, 2024 and sell it today you would earn a total of 12.00 from holding Kinetics Global Fund or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. International Investors Gold
Performance |
| Timeline |
| Kinetics Global |
| International Investors |
Kinetics Global and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and International Investors
The main advantage of trading using opposite Kinetics Global and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' long position.| Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Multi Disciplinary Income |
| International Investors vs. Siit Global Managed | International Investors vs. Barings Global Floating | International Investors vs. Ab Global Real | International Investors 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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