Correlation Between Kinetics Paradigm and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Oakmark International 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 Oakmark International 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 Oakmark International Small, you can compare the effects of market volatilities on Kinetics Paradigm and Oakmark International 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 Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Oakmark International.
Diversification Opportunities for Kinetics Paradigm and Oakmark International
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Oakmark is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Oakmark International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International 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 Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Oakmark International go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Oakmark International
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.63 times more return on investment than Oakmark International. However, Kinetics Paradigm is 3.63 times more volatile than Oakmark International Small. It trades about 0.64 of its potential returns per unit of risk. Oakmark International Small is currently generating about -0.41 per unit of risk. If you would invest 11,216 in Kinetics Paradigm Fund on August 25, 2024 and sell it today you would earn a total of 5,221 from holding Kinetics Paradigm Fund or generate 46.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Oakmark International Small
Performance |
| Timeline |
| Kinetics Paradigm |
| Oakmark International |
Kinetics Paradigm and Oakmark International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Oakmark International
The main advantage of trading using opposite Kinetics Paradigm and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Oakmark International 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 Oakmark International will offset losses from the drop in Oakmark International'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 |
| Oakmark International vs. Oakmark International Fund | Oakmark International vs. Oakmark Global Fund | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark Global Select |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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