Correlation Between Kinetics Global and High Yield
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and High Yield 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 High Yield 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 High Yield Portfolio, you can compare the effects of market volatilities on Kinetics Global and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and High Yield.
Diversification Opportunities for Kinetics Global and High Yield
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and High is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and High Yield Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Portfolio 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Portfolio has no effect on the direction of Kinetics Global i.e., Kinetics Global and High Yield go up and down completely randomly.
Pair Corralation between Kinetics Global and High Yield
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 5.77 times more return on investment than High Yield. However, Kinetics Global is 5.77 times more volatile than High Yield Portfolio. It trades about 0.12 of its potential returns per unit of risk. High Yield Portfolio is currently generating about 0.15 per unit of risk. If you would invest 771.00 in Kinetics Global Fund on October 25, 2024 and sell it today you would earn a total of 831.00 from holding Kinetics Global Fund or generate 107.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. High Yield Portfolio
Performance |
| Timeline |
| Kinetics Global |
| High Yield Portfolio |
Kinetics Global and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and High Yield
The main advantage of trading using opposite Kinetics Global and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Kinetics Global vs. Rationalpier 88 Convertible | Kinetics Global vs. Lord Abbett Convertible | Kinetics Global vs. Advent Claymore Convertible | Kinetics Global vs. Allianzgi Convertible Income |
| High Yield vs. Gmo Global Equity | High Yield vs. Investec Global Franchise | High Yield vs. Kinetics Global Fund | High Yield vs. Ab Global Bond |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |