Correlation Between Kinetics Market and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Federated Premier 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 Market and Federated Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Market Opportunities and Federated Premier Municipal, you can compare the effects of market volatilities on Kinetics Market and Federated Premier 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 Market with a short position of Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Federated Premier.
Diversification Opportunities for Kinetics Market and Federated Premier
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Federated is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier and Kinetics Market 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 Market Opportunities are associated (or correlated) with Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Kinetics Market i.e., Kinetics Market and Federated Premier go up and down completely randomly.
Pair Corralation between Kinetics Market and Federated Premier
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 1.99 times more return on investment than Federated Premier. However, Kinetics Market is 1.99 times more volatile than Federated Premier Municipal. It trades about 0.76 of its potential returns per unit of risk. Federated Premier Municipal is currently generating about -0.26 per unit of risk. If you would invest 6,949 in Kinetics Market Opportunities on August 24, 2024 and sell it today you would earn a total of 2,210 from holding Kinetics Market Opportunities or generate 31.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Federated Premier Municipal
Performance |
| Timeline |
| Kinetics Market Oppo |
| Federated Premier |
Kinetics Market and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Federated Premier
The main advantage of trading using opposite Kinetics Market and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Federated Premier 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 Federated Premier will offset losses from the drop in Federated Premier's long position.| Kinetics Market vs. Virtus Real Estate | Kinetics Market vs. Pender Real Estate | Kinetics Market vs. Tiaa Cref Real Estate | Kinetics Market vs. Deutsche Real Estate |
| Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance National | Federated Premier vs. Blackrock Muniyield Quality | Federated Premier vs. Munivest Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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