Correlation Between Kinetics Paradigm and Sit Small
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Sit Small 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 Sit Small 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 Sit Small Cap, you can compare the effects of market volatilities on Kinetics Paradigm and Sit Small 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 Sit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Sit Small.
Diversification Opportunities for Kinetics Paradigm and Sit Small
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Sit is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Sit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Small 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 Sit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Small Cap has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Sit Small go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Sit Small
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.47 times more return on investment than Sit Small. However, Kinetics Paradigm is 2.47 times more volatile than Sit Small Cap. It trades about 0.47 of its potential returns per unit of risk. Sit Small Cap is currently generating about 0.12 per unit of risk. If you would invest 11,416 in Kinetics Paradigm Fund on August 30, 2024 and sell it today you would earn a total of 4,354 from holding Kinetics Paradigm Fund or generate 38.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Sit Small Cap
Performance |
| Timeline |
| Kinetics Paradigm |
| Sit Small Cap |
Kinetics Paradigm and Sit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Sit Small
The main advantage of trading using opposite Kinetics Paradigm and Sit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Sit Small 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 Sit Small will offset losses from the drop in Sit Small's long position.| Kinetics Paradigm vs. Calamos Dynamic Convertible | Kinetics Paradigm vs. Putnam Convertible Incm Gwth | Kinetics Paradigm vs. Gabelli Convertible And | Kinetics Paradigm vs. Rationalpier 88 Convertible |
| Sit Small vs. T Rowe Price | Sit Small vs. T Rowe Price | Sit Small vs. T Rowe Price | Sit Small vs. Midcap Fund Class |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |