Correlation Between Kinetics Paradigm and Usaa Nasdaq
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Usaa Nasdaq 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 Usaa Nasdaq 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 Usaa Nasdaq 100, you can compare the effects of market volatilities on Kinetics Paradigm and Usaa Nasdaq 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 Usaa Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Usaa Nasdaq.
Diversification Opportunities for Kinetics Paradigm and Usaa Nasdaq
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Usaa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Usaa Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usaa Nasdaq 100 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 Usaa Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usaa Nasdaq 100 has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Usaa Nasdaq go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Usaa Nasdaq
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 1.85 times more return on investment than Usaa Nasdaq. However, Kinetics Paradigm is 1.85 times more volatile than Usaa Nasdaq 100. It trades about 0.16 of its potential returns per unit of risk. Usaa Nasdaq 100 is currently generating about 0.11 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 Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Usaa Nasdaq 100
Performance |
| Timeline |
| Kinetics Paradigm |
| Usaa Nasdaq 100 |
Kinetics Paradigm and Usaa Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Usaa Nasdaq
The main advantage of trading using opposite Kinetics Paradigm and Usaa Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Usaa Nasdaq 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 Usaa Nasdaq will offset losses from the drop in Usaa Nasdaq'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 |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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