Correlation Between Kinetics Global and Voya International
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Voya International 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 Voya International 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 Voya International Index, you can compare the effects of market volatilities on Kinetics Global and Voya International 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 Voya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Voya International.
Diversification Opportunities for Kinetics Global and Voya International
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Voya is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International Index 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 Voya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Kinetics Global i.e., Kinetics Global and Voya International go up and down completely randomly.
Pair Corralation between Kinetics Global and Voya International
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 1.59 times more return on investment than Voya International. However, Kinetics Global is 1.59 times more volatile than Voya International Index. It trades about 0.37 of its potential returns per unit of risk. Voya International Index is currently generating about -0.1 per unit of risk. If you would invest 1,184 in Kinetics Global Fund on August 28, 2024 and sell it today you would earn a total of 448.00 from holding Kinetics Global Fund or generate 37.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Voya International Index
Performance |
| Timeline |
| Kinetics Global |
| Voya International Index |
Kinetics Global and Voya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Voya International
The main advantage of trading using opposite Kinetics Global and Voya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Voya International 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 Voya International will offset losses from the drop in Voya International'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 |
| Voya International vs. Voya Bond Index | Voya International vs. Voya Bond Index | Voya International vs. Voya Limited Maturity | Voya International vs. Voya Limited Maturity |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |