Correlation Between Kinetics Global and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Aqr Managed 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 Aqr Managed 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 Aqr Managed Futures, you can compare the effects of market volatilities on Kinetics Global and Aqr Managed 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 Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Aqr Managed.
Diversification Opportunities for Kinetics Global and Aqr Managed
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Aqr is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures 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 Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Kinetics Global i.e., Kinetics Global and Aqr Managed go up and down completely randomly.
Pair Corralation between Kinetics Global and Aqr Managed
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 1.94 times more return on investment than Aqr Managed. However, Kinetics Global is 1.94 times more volatile than Aqr Managed Futures. It trades about 0.31 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.16 per unit of risk. If you would invest 1,465 in Kinetics Global Fund on October 20, 2024 and sell it today you would earn a total of 110.00 from holding Kinetics Global Fund or generate 7.51% 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. Aqr Managed Futures
Performance |
| Timeline |
| Kinetics Global |
| Aqr Managed Futures |
Kinetics Global and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Aqr Managed
The main advantage of trading using opposite Kinetics Global and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Kinetics Global vs. Blackrock Exchange Portfolio | Kinetics Global vs. Putnam Money Market | Kinetics Global vs. Dws Government Money | Kinetics Global vs. Cref Money Market |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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