Correlation Between Kinetics Paradigm and Gotham Total
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Gotham Total 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 Gotham Total 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 Gotham Total Return, you can compare the effects of market volatilities on Kinetics Paradigm and Gotham Total 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 Gotham Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Gotham Total.
Diversification Opportunities for Kinetics Paradigm and Gotham Total
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinetics and GOTHAM is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Gotham Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotham Total Return 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 Gotham Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotham Total Return has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Gotham Total go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Gotham Total
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.78 times more return on investment than Gotham Total. However, Kinetics Paradigm is 2.78 times more volatile than Gotham Total Return. It trades about 0.13 of its potential returns per unit of risk. Gotham Total Return is currently generating about 0.01 per unit of risk. If you would invest 7,152 in Kinetics Paradigm Fund on November 28, 2024 and sell it today you would earn a total of 5,343 from holding Kinetics Paradigm Fund or generate 74.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Gotham Total Return
Performance |
| Timeline |
| Kinetics Paradigm |
| Gotham Total Return |
Kinetics Paradigm and Gotham Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Gotham Total
The main advantage of trading using opposite Kinetics Paradigm and Gotham Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Gotham Total 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 Gotham Total will offset losses from the drop in Gotham Total's long position.| Kinetics Paradigm vs. Ab Global Bond | Kinetics Paradigm vs. Intermediate Term Bond Fund | Kinetics Paradigm vs. Multisector Bond Sma | Kinetics Paradigm vs. Calvert Bond Portfolio |
| Gotham Total vs. Gotham Neutral Fund | Gotham Total vs. Gotham Index Plus | Gotham Total vs. Gotham Absolute Return | Gotham Total vs. Gotham Large Value |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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