Correlation Between Kinetics Global and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Nuveen Global 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 Nuveen Global 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 Nuveen Global Real, you can compare the effects of market volatilities on Kinetics Global and Nuveen Global 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 Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Nuveen Global.
Diversification Opportunities for Kinetics Global and Nuveen Global
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and Nuveen is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Nuveen Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global Real 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 Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global Real has no effect on the direction of Kinetics Global i.e., Kinetics Global and Nuveen Global go up and down completely randomly.
Pair Corralation between Kinetics Global and Nuveen Global
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 2.12 times more return on investment than Nuveen Global. However, Kinetics Global is 2.12 times more volatile than Nuveen Global Real. It trades about 0.21 of its potential returns per unit of risk. Nuveen Global Real is currently generating about 0.12 per unit of risk. If you would invest 1,108 in Kinetics Global Fund on September 1, 2024 and sell it today you would earn a total of 538.00 from holding Kinetics Global Fund or generate 48.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Kinetics Global Fund vs. Nuveen Global Real
Performance |
| Timeline |
| Kinetics Global |
| Nuveen Global Real |
Kinetics Global and Nuveen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Nuveen Global
The main advantage of trading using opposite Kinetics Global and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Nuveen Global 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 Nuveen Global will offset losses from the drop in Nuveen Global's long position.| Kinetics Global vs. Touchstone Large Cap | Kinetics Global vs. Enhanced Large Pany | Kinetics Global vs. T Rowe Price | Kinetics Global vs. T Rowe Price |
| Nuveen Global vs. Commonwealth Global Fund | Nuveen Global vs. T Rowe Price | Nuveen Global vs. Mirova Global Green | Nuveen Global vs. Blue Current Global |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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