Correlation Between Kinetics Global and City National
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Kinetics Global and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and City National.
Diversification Opportunities for Kinetics Global and City National
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinetics and City is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Kinetics Global i.e., Kinetics Global and City National go up and down completely randomly.
Pair Corralation between Kinetics Global and City National
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 18.15 times more return on investment than City National. However, Kinetics Global is 18.15 times more volatile than City National Rochdale. It trades about 0.41 of its potential returns per unit of risk. City National Rochdale is currently generating about 0.87 per unit of risk. If you would invest 1,469 in Kinetics Global Fund on October 24, 2024 and sell it today you would earn a total of 127.00 from holding Kinetics Global Fund or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. City National Rochdale
Performance |
| Timeline |
| Kinetics Global |
| City National Rochdale |
Kinetics Global and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and City National
The main advantage of trading using opposite Kinetics Global and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Kinetics Global vs. Oppenheimer Gold Special | Kinetics Global vs. Deutsche Gold Precious | Kinetics Global vs. Fidelity Advisor Gold | Kinetics Global vs. Gold Portfolio Fidelity |
| City National vs. Fidelity Capital Income | City National vs. Buffalo High Yield | City National vs. Transamerica High Yield | City National vs. Msift High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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