Correlation Between Kinetics Market and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Dunham Large 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 Dunham Large 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 Dunham Large Cap, you can compare the effects of market volatilities on Kinetics Market and Dunham Large 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 Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Dunham Large.
Diversification Opportunities for Kinetics Market and Dunham Large
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Dunham is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap 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 Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Kinetics Market i.e., Kinetics Market and Dunham Large go up and down completely randomly.
Pair Corralation between Kinetics Market and Dunham Large
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 2.68 times more return on investment than Dunham Large. However, Kinetics Market is 2.68 times more volatile than Dunham Large Cap. It trades about 0.22 of its potential returns per unit of risk. Dunham Large Cap is currently generating about 0.39 per unit of risk. If you would invest 7,446 in Kinetics Market Opportunities on November 2, 2024 and sell it today you would earn a total of 556.00 from holding Kinetics Market Opportunities or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Dunham Large Cap
Performance |
| Timeline |
| Kinetics Market Oppo |
| Dunham Large Cap |
Kinetics Market and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Dunham Large
The main advantage of trading using opposite Kinetics Market and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Kinetics Market vs. Lord Abbett Intermediate | Kinetics Market vs. California Municipal Portfolio | Kinetics Market vs. Inverse Government Long | Kinetics Market vs. Alpine Ultra Short |
| Dunham Large vs. Dunham Appreciation Income | Dunham Large vs. Dunham Dynamic Macro | Dunham Large vs. Dunham Porategovernment Bond | Dunham Large vs. Dunham Small Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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