Correlation Between Kinetics Paradigm and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Champlain Mid 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 Champlain Mid 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 Champlain Mid Cap, you can compare the effects of market volatilities on Kinetics Paradigm and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Champlain Mid.
Diversification Opportunities for Kinetics Paradigm and Champlain Mid
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Champlain is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid Cap 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 Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Champlain Mid go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Champlain Mid
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.28 times more return on investment than Champlain Mid. However, Kinetics Paradigm is 3.28 times more volatile than Champlain Mid Cap. It trades about 0.49 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about 0.38 per unit of risk. If you would invest 11,238 in Kinetics Paradigm Fund on August 28, 2024 and sell it today you would earn a total of 4,289 from holding Kinetics Paradigm Fund or generate 38.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Champlain Mid Cap
Performance |
| Timeline |
| Kinetics Paradigm |
| Champlain Mid Cap |
Kinetics Paradigm and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Champlain Mid
The main advantage of trading using opposite Kinetics Paradigm and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid's long position.| Kinetics Paradigm vs. Mesirow Financial Small | Kinetics Paradigm vs. John Hancock Financial | Kinetics Paradigm vs. Icon Financial Fund | Kinetics Paradigm vs. Royce Global Financial |
| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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