Correlation Between Kinetics Paradigm and Mainstay
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Mainstay 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 Mainstay 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 Mainstay Sp 500, you can compare the effects of market volatilities on Kinetics Paradigm and Mainstay 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 Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Mainstay.
Diversification Opportunities for Kinetics Paradigm and Mainstay
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Mainstay is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Mainstay go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Mainstay
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.31 times more return on investment than Mainstay. However, Kinetics Paradigm is 2.31 times more volatile than Mainstay Sp 500. It trades about 0.19 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.13 per unit of risk. If you would invest 7,766 in Kinetics Paradigm Fund on August 24, 2024 and sell it today you would earn a total of 9,978 from holding Kinetics Paradigm Fund or generate 128.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Mainstay Sp 500
Performance |
| Timeline |
| Kinetics Paradigm |
| Mainstay Sp 500 |
Kinetics Paradigm and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Mainstay
The main advantage of trading using opposite Kinetics Paradigm and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Mainstay 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 Mainstay will offset losses from the drop in Mainstay's long position.| Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price |
| Mainstay vs. Champlain Small | Mainstay vs. Tax Managed Mid Small | Mainstay vs. Touchstone Small Cap | Mainstay vs. Small Pany Growth |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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