Correlation Between Kinetics Paradigm and Northern California
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Northern California 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 Northern California 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 Northern California Intermediate, you can compare the effects of market volatilities on Kinetics Paradigm and Northern California 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 Northern California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Northern California.
Diversification Opportunities for Kinetics Paradigm and Northern California
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Northern is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Northern California Intermedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern California 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 Northern California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern California has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Northern California go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Northern California
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 11.23 times more return on investment than Northern California. However, Kinetics Paradigm is 11.23 times more volatile than Northern California Intermediate. It trades about 0.16 of its potential returns per unit of risk. Northern California Intermediate is currently generating about 0.16 per unit of risk. If you would invest 6,853 in Kinetics Paradigm Fund on September 1, 2024 and sell it today you would earn a total of 8,633 from holding Kinetics Paradigm Fund or generate 125.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Northern California Intermedia
Performance |
| Timeline |
| Kinetics Paradigm |
| Northern California |
Kinetics Paradigm and Northern California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Northern California
The main advantage of trading using opposite Kinetics Paradigm and Northern California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Northern California 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 Northern California will offset losses from the drop in Northern California's long position.| Kinetics Paradigm vs. Kinetics Global Fund | Kinetics Paradigm vs. Kinetics Global Fund | Kinetics Paradigm vs. Kinetics Paradigm Fund | Kinetics Paradigm vs. Kinetics Internet Fund |
| Northern California vs. Us Global Leaders | Northern California vs. Dreyfusstandish Global Fixed | Northern California vs. Mirova Global Green | Northern California vs. Rbc Global Opportunities |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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