Correlation Between Kinetics Paradigm and Kkr Income
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Kkr Income 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 Kkr Income 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 Kkr Income Opportunities, you can compare the effects of market volatilities on Kinetics Paradigm and Kkr Income 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 Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Kkr Income.
Diversification Opportunities for Kinetics Paradigm and Kkr Income
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Kkr is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities 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 Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Kkr Income go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Kkr Income
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.33 times more return on investment than Kkr Income. However, Kinetics Paradigm is 2.33 times more volatile than Kkr Income Opportunities. It trades about 0.07 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about 0.1 per unit of risk. If you would invest 8,865 in Kinetics Paradigm Fund on September 3, 2024 and sell it today you would earn a total of 6,621 from holding Kinetics Paradigm Fund or generate 74.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Kkr Income Opportunities
Performance |
| Timeline |
| Kinetics Paradigm |
| Kkr Income Opportunities |
Kinetics Paradigm and Kkr Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Kkr Income
The main advantage of trading using opposite Kinetics Paradigm and Kkr Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Kkr Income 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 Kkr Income will offset losses from the drop in Kkr Income's long position.| Kinetics Paradigm vs. Rbc Short Duration | Kinetics Paradigm vs. Vanguard Institutional Short Term | Kinetics Paradigm vs. Touchstone Ultra Short | Kinetics Paradigm vs. Federated Short Term Income |
| Kkr Income vs. Tekla Healthcare Investors | Kkr Income vs. Tekla Life Sciences | Kkr Income vs. Cohen Steers Reit | Kkr Income vs. XAI Octagon Floating |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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