Correlation Between Kinetics Paradigm and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Cohen Steers 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 Cohen Steers 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 Cohen Steers Reit, you can compare the effects of market volatilities on Kinetics Paradigm and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Cohen Steers.
Diversification Opportunities for Kinetics Paradigm and Cohen Steers
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Cohen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Reit has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Cohen Steers go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Cohen Steers
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.17 times more return on investment than Cohen Steers. However, Kinetics Paradigm is 2.17 times more volatile than Cohen Steers Reit. It trades about 0.27 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.14 per unit of risk. If you would invest 8,648 in Kinetics Paradigm Fund on August 28, 2024 and sell it today you would earn a total of 9,958 from holding Kinetics Paradigm Fund or generate 115.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Cohen Steers Reit
Performance |
| Timeline |
| Kinetics Paradigm |
| Cohen Steers Reit |
Kinetics Paradigm and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Cohen Steers
The main advantage of trading using opposite Kinetics Paradigm and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Kinetics Paradigm vs. Limited Term Tax | Kinetics Paradigm vs. Versatile Bond Portfolio | Kinetics Paradigm vs. Ultra Short Term Fixed | Kinetics Paradigm vs. Maryland Tax Free Bond |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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