Correlation Between Kinetics Market and Barings Active
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Barings Active 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 Barings Active 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 Barings Active Short, you can compare the effects of market volatilities on Kinetics Market and Barings Active 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 Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Barings Active.
Diversification Opportunities for Kinetics Market and Barings Active
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Barings is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active 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 Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Kinetics Market i.e., Kinetics Market and Barings Active go up and down completely randomly.
Pair Corralation between Kinetics Market and Barings Active
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 25.09 times more return on investment than Barings Active. However, Kinetics Market is 25.09 times more volatile than Barings Active Short. It trades about 0.44 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.09 per unit of risk. If you would invest 6,902 in Kinetics Market Opportunities on September 1, 2024 and sell it today you would earn a total of 2,067 from holding Kinetics Market Opportunities or generate 29.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Barings Active Short
Performance |
| Timeline |
| Kinetics Market Oppo |
| Barings Active Short |
Kinetics Market and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Barings Active
The main advantage of trading using opposite Kinetics Market and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Kinetics Market vs. Kinetics Global Fund | Kinetics Market vs. Kinetics Global Fund | Kinetics Market vs. Kinetics Paradigm Fund | Kinetics Market vs. Kinetics Internet Fund |
| Barings Active vs. Ab Bond Inflation | Barings Active vs. Western Asset Inflation | Barings Active vs. Blackrock Inflation Protected | Barings Active vs. Aqr Managed Futures |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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