Correlation Between Kinetics Market and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Kinetics Market and Angel Oak 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 Angel Oak 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 Angel Oak Financial, you can compare the effects of market volatilities on Kinetics Market and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Angel Oak.
Diversification Opportunities for Kinetics Market and Angel Oak
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Angel is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Kinetics Market i.e., Kinetics Market and Angel Oak go up and down completely randomly.
Pair Corralation between Kinetics Market and Angel Oak
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 9.78 times more return on investment than Angel Oak. However, Kinetics Market is 9.78 times more volatile than Angel Oak Financial. It trades about 0.01 of its potential returns per unit of risk. Angel Oak Financial is currently generating about -0.18 per unit of risk. If you would invest 7,779 in Kinetics Market Opportunities on October 16, 2024 and sell it today you would lose (6.00) from holding Kinetics Market Opportunities or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Angel Oak Financial
Performance |
| Timeline |
| Kinetics Market Oppo |
| Angel Oak Financial |
Kinetics Market and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Angel Oak
The main advantage of trading using opposite Kinetics Market and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Kinetics Market vs. Glg Intl Small | Kinetics Market vs. Artisan Small Cap | Kinetics Market vs. Cardinal Small Cap | Kinetics Market vs. Hunter Small Cap |
| Angel Oak vs. Blackrock Large Cap | Angel Oak vs. Vest Large Cap | Angel Oak vs. Aqr Large Cap | Angel Oak vs. Qs Large Cap |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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