Correlation Between Kinetics Paradigm and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Boston Partners 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 Boston Partners 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 Boston Partners Longshort, you can compare the effects of market volatilities on Kinetics Paradigm and Boston Partners 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 Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Boston Partners.
Diversification Opportunities for Kinetics Paradigm and Boston Partners
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Boston is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort 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 Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Boston Partners go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Boston Partners
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 4.29 times more return on investment than Boston Partners. However, Kinetics Paradigm is 4.29 times more volatile than Boston Partners Longshort. It trades about 0.37 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.13 per unit of risk. If you would invest 10,349 in Kinetics Paradigm Fund on August 29, 2024 and sell it today you would earn a total of 7,060 from holding Kinetics Paradigm Fund or generate 68.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Boston Partners Longshort
Performance |
| Timeline |
| Kinetics Paradigm |
| Boston Partners Longshort |
Kinetics Paradigm and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Boston Partners
The main advantage of trading using opposite Kinetics Paradigm and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. Midcap Fund Class |
| Boston Partners vs. Boston Partners Longshort | Boston Partners vs. Caldwell Orkin Market | Boston Partners vs. Diamond Hill Long Short | Boston Partners vs. Marketfield Fund Marketfield |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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