Correlation Between Kinetics Market and Catalystmillburn
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Catalystmillburn 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 Catalystmillburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Kinetics Market and Catalystmillburn 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 Catalystmillburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Catalystmillburn.
Diversification Opportunities for Kinetics Market and Catalystmillburn
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Catalystmillburn is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalystmillburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Kinetics Market i.e., Kinetics Market and Catalystmillburn go up and down completely randomly.
Pair Corralation between Kinetics Market and Catalystmillburn
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 3.05 times more return on investment than Catalystmillburn. However, Kinetics Market is 3.05 times more volatile than Catalystmillburn Hedge Strategy. It trades about 0.25 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.03 per unit of risk. If you would invest 4,697 in Kinetics Market Opportunities on September 1, 2024 and sell it today you would earn a total of 4,272 from holding Kinetics Market Opportunities or generate 90.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Kinetics Market Oppo |
| Catalystmillburn Hedge |
Kinetics Market and Catalystmillburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Catalystmillburn
The main advantage of trading using opposite Kinetics Market and Catalystmillburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Catalystmillburn 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 Catalystmillburn will offset losses from the drop in Catalystmillburn's long position.| Kinetics Market vs. Kinetics Global Fund | Kinetics Market vs. Kinetics Global Fund | Kinetics Market vs. Kinetics Paradigm Fund | Kinetics Market vs. Kinetics Internet Fund |
| Catalystmillburn vs. Catalystsmh High Income | Catalystmillburn vs. Catalystsmh High Income | Catalystmillburn vs. Catalystsmh High Income | Catalystmillburn vs. Catalyst Mlp Infrastructure |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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