Correlation Between Kinetics Market and Aberdeen Gbl
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Aberdeen Gbl 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 Gbl 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 Gbl Eq, you can compare the effects of market volatilities on Kinetics Market and Aberdeen Gbl 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 Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Aberdeen Gbl.
Diversification Opportunities for Kinetics Market and Aberdeen Gbl
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and Aberdeen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Aberdeen Gbl Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Gbl Eq 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 Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Gbl Eq has no effect on the direction of Kinetics Market i.e., Kinetics Market and Aberdeen Gbl go up and down completely randomly.
Pair Corralation between Kinetics Market and Aberdeen Gbl
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 1.19 times more return on investment than Aberdeen Gbl. However, Kinetics Market is 1.19 times more volatile than Aberdeen Gbl Eq. It trades about 0.1 of its potential returns per unit of risk. Aberdeen Gbl Eq is currently generating about 0.0 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 | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Aberdeen Gbl Eq
Performance |
| Timeline |
| Kinetics Market Oppo |
| Aberdeen Gbl Eq |
Kinetics Market and Aberdeen Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Aberdeen Gbl
The main advantage of trading using opposite Kinetics Market and Aberdeen Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Aberdeen Gbl 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 Gbl will offset losses from the drop in Aberdeen Gbl'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 |
| Aberdeen Gbl vs. Fundvantage Trust | Aberdeen Gbl vs. Massmutual Select Diversified | Aberdeen Gbl vs. Locorr Market Trend | Aberdeen Gbl vs. Kinetics Market Opportunities |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |