Correlation Between Kinetics Market and Federated Total
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Federated Total 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 Total 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 Total Return, you can compare the effects of market volatilities on Kinetics Market and Federated Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Federated Total.
Diversification Opportunities for Kinetics Market and Federated Total
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Federated is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Federated Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Total Return 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 Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Total Return has no effect on the direction of Kinetics Market i.e., Kinetics Market and Federated Total go up and down completely randomly.
Pair Corralation between Kinetics Market and Federated Total
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 4.17 times more return on investment than Federated Total. However, Kinetics Market is 4.17 times more volatile than Federated Total Return. It trades about 0.15 of its potential returns per unit of risk. Federated Total Return is currently generating about 0.03 per unit of risk. If you would invest 3,485 in Kinetics Market Opportunities on September 12, 2024 and sell it today you would earn a total of 4,408 from holding Kinetics Market Opportunities or generate 126.48% 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 Total Return
Performance |
| Timeline |
| Kinetics Market Oppo |
| Federated Total Return |
Kinetics Market and Federated Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Federated Total
The main advantage of trading using opposite Kinetics Market and Federated Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Federated Total 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 Total will offset losses from the drop in Federated Total's long position.| Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. SCOR PK |
| Federated Total vs. Locorr Market Trend | Federated Total vs. Investec Emerging Markets | Federated Total vs. Kinetics Market Opportunities | Federated Total vs. Sp Midcap Index |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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