Correlation Between Kinetics Paradigm and Viking Tax-free
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Viking Tax-free 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 Viking Tax-free 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 Viking Tax Free Fund, you can compare the effects of market volatilities on Kinetics Paradigm and Viking Tax-free 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 Viking Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Viking Tax-free.
Diversification Opportunities for Kinetics Paradigm and Viking Tax-free
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and Viking is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Viking Tax Free Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Tax Free 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 Viking Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Tax Free has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Viking Tax-free go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Viking Tax-free
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 11.71 times more return on investment than Viking Tax-free. However, Kinetics Paradigm is 11.71 times more volatile than Viking Tax Free Fund. It trades about 0.49 of its potential returns per unit of risk. Viking Tax Free Fund is currently generating about 0.15 per unit of risk. If you would invest 12,597 in Kinetics Paradigm Fund on August 29, 2024 and sell it today you would earn a total of 4,812 from holding Kinetics Paradigm Fund or generate 38.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Viking Tax Free Fund
Performance |
| Timeline |
| Kinetics Paradigm |
| Viking Tax Free |
Kinetics Paradigm and Viking Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Viking Tax-free
The main advantage of trading using opposite Kinetics Paradigm and Viking Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Viking Tax-free 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 Viking Tax-free will offset losses from the drop in Viking Tax-free'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 |
| Viking Tax-free vs. Wasatch Global Opportunities | Viking Tax-free vs. Dreyfusstandish Global Fixed | Viking Tax-free vs. Ab Global Risk | Viking Tax-free vs. Scharf Global Opportunity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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