Correlation Between Kinetics Market and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Kinetics Market and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Simt Multi-asset.
Diversification Opportunities for Kinetics Market and Simt Multi-asset
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Simt is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Kinetics Market i.e., Kinetics Market and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Kinetics Market and Simt Multi-asset
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 6.74 times more return on investment than Simt Multi-asset. However, Kinetics Market is 6.74 times more volatile than Simt Multi Asset Accumulation. It trades about 0.44 of its potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.28 per unit of risk. If you would invest 6,902 in Kinetics Market Opportunities on September 1, 2024 and sell it today you would earn a total of 2,067 from holding Kinetics Market Opportunities or generate 29.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Kinetics Market Oppo |
| Simt Multi Asset |
Kinetics Market and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Simt Multi-asset
The main advantage of trading using opposite Kinetics Market and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset'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 |
| Simt Multi-asset vs. Dunham Real Estate | Simt Multi-asset vs. Amg Managers Centersquare | Simt Multi-asset vs. Deutsche Real Estate | Simt Multi-asset vs. Great West Real Estate |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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