Correlation Between Kinetics Paradigm and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Cohen Steers 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 Cohen Steers 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 Cohen Steers Closed, you can compare the effects of market volatilities on Kinetics Paradigm and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Cohen Steers.
Diversification Opportunities for Kinetics Paradigm and Cohen Steers
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Cohen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Closed has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Cohen Steers go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Cohen Steers
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 1.52 times more return on investment than Cohen Steers. However, Kinetics Paradigm is 1.52 times more volatile than Cohen Steers Closed. It trades about -0.04 of its potential returns per unit of risk. Cohen Steers Closed is currently generating about -0.08 per unit of risk. If you would invest 14,414 in Kinetics Paradigm Fund on January 14, 2025 and sell it today you would lose (921.00) from holding Kinetics Paradigm Fund or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Cohen Steers Closed
Performance |
| Timeline |
| Kinetics Paradigm |
| Cohen Steers Closed |
Kinetics Paradigm and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Cohen Steers
The main advantage of trading using opposite Kinetics Paradigm and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Kinetics Paradigm vs. Johcm Emerging Markets | Kinetics Paradigm vs. Fidelity Series Emerging | Kinetics Paradigm vs. Ultraemerging Markets Profund | Kinetics Paradigm vs. Boston Partners Emerging |
| Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. Pimco Corporate Income |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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