Correlation Between Kinetics Paradigm and Americafirst Income
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Americafirst Income 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 Paradigm and Americafirst Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Paradigm Fund and Americafirst Income Fund, you can compare the effects of market volatilities on Kinetics Paradigm and Americafirst Income 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 Paradigm with a short position of Americafirst Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Americafirst Income.
Diversification Opportunities for Kinetics Paradigm and Americafirst Income
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Americafirst is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Americafirst Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Income and Kinetics Paradigm 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 Paradigm Fund are associated (or correlated) with Americafirst Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Income has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Americafirst Income go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Americafirst Income
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.57 times more return on investment than Americafirst Income. However, Kinetics Paradigm is 3.57 times more volatile than Americafirst Income Fund. It trades about 0.42 of its potential returns per unit of risk. Americafirst Income Fund is currently generating about 0.08 per unit of risk. If you would invest 12,796 in Kinetics Paradigm Fund on August 30, 2024 and sell it today you would earn a total of 4,243 from holding Kinetics Paradigm Fund or generate 33.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Americafirst Income Fund
Performance |
| Timeline |
| Kinetics Paradigm |
| Americafirst Income |
Kinetics Paradigm and Americafirst Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Americafirst Income
The main advantage of trading using opposite Kinetics Paradigm and Americafirst Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Americafirst Income 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 Americafirst Income will offset losses from the drop in Americafirst Income's long position.| Kinetics Paradigm vs. Hartford Moderate Allocation | Kinetics Paradigm vs. Fundamental Large Cap | Kinetics Paradigm vs. Upright Assets Allocation | Kinetics Paradigm vs. Alternative Asset Allocation |
| Americafirst Income vs. Americafirst Large Cap | Americafirst Income vs. Americafirst Large Cap | Americafirst Income vs. Americafirst Large Cap | Americafirst Income vs. Americafirst Monthly Risk On |
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 CEOs Directory module to screen CEOs from public companies around the world.
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