Correlation Between Kinetics Global and Nexpoint Real
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Nexpoint Real 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 Nexpoint Real 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 Nexpoint Real Estate, you can compare the effects of market volatilities on Kinetics Global and Nexpoint Real 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 Nexpoint Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Nexpoint Real.
Diversification Opportunities for Kinetics Global and Nexpoint Real
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Nexpoint is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Nexpoint Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexpoint Real Estate 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 Nexpoint Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexpoint Real Estate has no effect on the direction of Kinetics Global i.e., Kinetics Global and Nexpoint Real go up and down completely randomly.
Pair Corralation between Kinetics Global and Nexpoint Real
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 1.29 times more return on investment than Nexpoint Real. However, Kinetics Global is 1.29 times more volatile than Nexpoint Real Estate. It trades about 0.11 of its potential returns per unit of risk. Nexpoint Real Estate is currently generating about -0.02 per unit of risk. If you would invest 777.00 in Kinetics Global Fund on October 14, 2024 and sell it today you would earn a total of 739.00 from holding Kinetics Global Fund or generate 95.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Kinetics Global Fund vs. Nexpoint Real Estate
Performance |
| Timeline |
| Kinetics Global |
| Nexpoint Real Estate |
Kinetics Global and Nexpoint Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Nexpoint Real
The main advantage of trading using opposite Kinetics Global and Nexpoint Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Nexpoint Real 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 Nexpoint Real will offset losses from the drop in Nexpoint Real's long position.| Kinetics Global vs. T Rowe Price | Kinetics Global vs. Us Vector Equity | Kinetics Global vs. Qs Global Equity | Kinetics Global vs. Locorr Dynamic Equity |
| Nexpoint Real vs. Rbb Fund Trust | Nexpoint Real vs. Ms Global Fixed | Nexpoint Real vs. Kinetics Global Fund | Nexpoint Real vs. Us Global Investors |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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