Correlation Between Kinetics Market and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Astor Long/short 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 Astor Long/short 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 Astor Longshort Fund, you can compare the effects of market volatilities on Kinetics Market and Astor Long/short 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 Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Astor Long/short.
Diversification Opportunities for Kinetics Market and Astor Long/short
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Astor is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Kinetics Market i.e., Kinetics Market and Astor Long/short go up and down completely randomly.
Pair Corralation between Kinetics Market and Astor Long/short
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 6.47 times more return on investment than Astor Long/short. However, Kinetics Market is 6.47 times more volatile than Astor Longshort Fund. It trades about 0.45 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.27 per unit of risk. If you would invest 6,650 in Kinetics Market Opportunities on August 29, 2024 and sell it today you would earn a total of 2,104 from holding Kinetics Market Opportunities or generate 31.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Astor Longshort Fund
Performance |
| Timeline |
| Kinetics Market Oppo |
| Astor Long/short |
Kinetics Market and Astor Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Astor Long/short
The main advantage of trading using opposite Kinetics Market and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Astor Long/short 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 Astor Long/short will offset losses from the drop in Astor Long/short's long position.| Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. Midcap Fund Class |
| Astor Long/short vs. Ambrus Core Bond | Astor Long/short vs. Ms Global Fixed | Astor Long/short vs. T Rowe Price | Astor Long/short vs. Multisector Bond Sma |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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