Correlation Between Kinetics Paradigm and Grandeur Peak
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Grandeur Peak 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 Grandeur Peak 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 Grandeur Peak International, you can compare the effects of market volatilities on Kinetics Paradigm and Grandeur Peak 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 Grandeur Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Grandeur Peak.
Diversification Opportunities for Kinetics Paradigm and Grandeur Peak
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Grandeur is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Grandeur Peak International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandeur Peak Intern 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 Grandeur Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandeur Peak Intern has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Grandeur Peak go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Grandeur Peak
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 1.77 times more return on investment than Grandeur Peak. However, Kinetics Paradigm is 1.77 times more volatile than Grandeur Peak International. It trades about 0.08 of its potential returns per unit of risk. Grandeur Peak International is currently generating about 0.01 per unit of risk. If you would invest 9,233 in Kinetics Paradigm Fund on August 30, 2024 and sell it today you would earn a total of 8,176 from holding Kinetics Paradigm Fund or generate 88.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Grandeur Peak International
Performance |
| Timeline |
| Kinetics Paradigm |
| Grandeur Peak Intern |
Kinetics Paradigm and Grandeur Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Grandeur Peak
The main advantage of trading using opposite Kinetics Paradigm and Grandeur Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Grandeur Peak 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 Grandeur Peak will offset losses from the drop in Grandeur Peak's 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 |
| Grandeur Peak vs. Multisector Bond Sma | Grandeur Peak vs. Bbh Intermediate Municipal | Grandeur Peak vs. Nebraska Municipal Fund | Grandeur Peak vs. Blrc Sgy Mnp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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