Correlation Between Kinetics Global and Jhancock Diversified
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Jhancock Diversified 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 Jhancock Diversified 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 Jhancock Diversified Macro, you can compare the effects of market volatilities on Kinetics Global and Jhancock Diversified 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 Jhancock Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Jhancock Diversified.
Diversification Opportunities for Kinetics Global and Jhancock Diversified
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Jhancock is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Jhancock Diversified Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Diversified 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 Jhancock Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Diversified has no effect on the direction of Kinetics Global i.e., Kinetics Global and Jhancock Diversified go up and down completely randomly.
Pair Corralation between Kinetics Global and Jhancock Diversified
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 3.83 times more return on investment than Jhancock Diversified. However, Kinetics Global is 3.83 times more volatile than Jhancock Diversified Macro. It trades about 0.5 of its potential returns per unit of risk. Jhancock Diversified Macro is currently generating about 0.06 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Jhancock Diversified Macro
Performance |
| Timeline |
| Kinetics Global |
| Jhancock Diversified |
Kinetics Global and Jhancock Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Jhancock Diversified
The main advantage of trading using opposite Kinetics Global and Jhancock Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Jhancock Diversified 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 Jhancock Diversified will offset losses from the drop in Jhancock Diversified'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 |
| Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Regional Bank Fund | Jhancock Diversified vs. Multimanager Lifestyle Moderate | Jhancock Diversified vs. Multimanager Lifestyle Balanced |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |