Correlation Between KFA Mount and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both KFA Mount and Horizon Kinetics 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 KFA Mount and Horizon Kinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KFA Mount Lucas and Horizon Kinetics Inflation, you can compare the effects of market volatilities on KFA Mount and Horizon Kinetics 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 KFA Mount with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of KFA Mount and Horizon Kinetics.
Diversification Opportunities for KFA Mount and Horizon Kinetics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KFA and Horizon is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding KFA Mount Lucas and Horizon Kinetics Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Inf and KFA Mount 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 KFA Mount Lucas are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Inf has no effect on the direction of KFA Mount i.e., KFA Mount and Horizon Kinetics go up and down completely randomly.
Pair Corralation between KFA Mount and Horizon Kinetics
Given the investment horizon of 90 days KFA Mount Lucas is expected to under-perform the Horizon Kinetics. But the etf apears to be less risky and, when comparing its historical volatility, KFA Mount Lucas is 1.43 times less risky than Horizon Kinetics. The etf trades about -0.03 of its potential returns per unit of risk. The Horizon Kinetics Inflation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,075 in Horizon Kinetics Inflation on December 5, 2024 and sell it today you would earn a total of 873.00 from holding Horizon Kinetics Inflation or generate 28.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KFA Mount Lucas vs. Horizon Kinetics Inflation
Performance |
| Timeline |
| KFA Mount Lucas |
| Horizon Kinetics Inf |
KFA Mount and Horizon Kinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KFA Mount and Horizon Kinetics
The main advantage of trading using opposite KFA Mount and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KFA Mount position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' long position.| KFA Mount vs. iMGP DBi Managed | ||
| KFA Mount vs. Simplify Exchange Traded | ||
| KFA Mount vs. Simplify Interest Rate | ||
| KFA Mount vs. AGFiQ Market Neutral |
| Horizon Kinetics vs. Quadratic Interest Rate | ||
| Horizon Kinetics vs. Simplify Interest Rate | ||
| Horizon Kinetics vs. iShares Small Cap | ||
| Horizon Kinetics vs. Freedom 100 Emerging |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |