Correlation Between Kinetics Market and Aberdeen Emerging
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Aberdeen Emerging 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 Aberdeen Emerging 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 Aberdeen Emerging Markets, you can compare the effects of market volatilities on Kinetics Market and Aberdeen Emerging 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 Aberdeen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Aberdeen Emerging.
Diversification Opportunities for Kinetics Market and Aberdeen Emerging
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Aberdeen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Aberdeen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Emerging Markets 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 Aberdeen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Emerging Markets has no effect on the direction of Kinetics Market i.e., Kinetics Market and Aberdeen Emerging go up and down completely randomly.
Pair Corralation between Kinetics Market and Aberdeen Emerging
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 4.83 times more return on investment than Aberdeen Emerging. However, Kinetics Market is 4.83 times more volatile than Aberdeen Emerging Markets. It trades about -0.01 of its potential returns per unit of risk. Aberdeen Emerging Markets is currently generating about -0.1 per unit of risk. If you would invest 8,045 in Kinetics Market Opportunities on September 12, 2024 and sell it today you would lose (152.00) from holding Kinetics Market Opportunities or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Aberdeen Emerging Markets
Performance |
| Timeline |
| Kinetics Market Oppo |
| Aberdeen Emerging Markets |
Kinetics Market and Aberdeen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Aberdeen Emerging
The main advantage of trading using opposite Kinetics Market and Aberdeen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Aberdeen Emerging 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 Aberdeen Emerging will offset losses from the drop in Aberdeen Emerging's long position.| Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. SCOR PK | Kinetics Market vs. Morningstar Unconstrained Allocation |
| Aberdeen Emerging vs. Locorr Market Trend | Aberdeen Emerging vs. Extended Market Index | Aberdeen Emerging vs. Kinetics Market Opportunities | Aberdeen Emerging vs. Shelton Emerging Markets |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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