Correlation Between Kinetics Market and First Eagle
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and First Eagle 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 First Eagle 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 First Eagle Gold, you can compare the effects of market volatilities on Kinetics Market and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and First Eagle.
Diversification Opportunities for Kinetics Market and First Eagle
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and First is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Kinetics Market i.e., Kinetics Market and First Eagle go up and down completely randomly.
Pair Corralation between Kinetics Market and First Eagle
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 1.07 times more return on investment than First Eagle. However, Kinetics Market is 1.07 times more volatile than First Eagle Gold. It trades about 0.1 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.03 per unit of risk. If you would invest 4,561 in Kinetics Market Opportunities on September 3, 2024 and sell it today you would earn a total of 4,408 from holding Kinetics Market Opportunities or generate 96.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. First Eagle Gold
Performance |
| Timeline |
| Kinetics Market Oppo |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetics Market and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and First Eagle
The main advantage of trading using opposite Kinetics Market and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Kinetics Market vs. Angel Oak Multi Strategy | Kinetics Market vs. Commodities Strategy Fund | Kinetics Market vs. T Rowe Price | Kinetics Market vs. Templeton Emerging Markets |
| First Eagle vs. Jhancock Diversified Macro | First Eagle vs. Legg Mason Bw | First Eagle vs. T Rowe Price | First Eagle vs. Fuller Thaler Behavioral |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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