Correlation Between Kinetics Paradigm and Sextant International
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Sextant 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 Sextant 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 Sextant International Fund, you can compare the effects of market volatilities on Kinetics Paradigm and Sextant 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 Sextant International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Sextant International.
Diversification Opportunities for Kinetics Paradigm and Sextant International
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinetics and Sextant is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Sextant International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant 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 Sextant International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant International has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Sextant International go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Sextant International
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.35 times more return on investment than Sextant International. However, Kinetics Paradigm is 2.35 times more volatile than Sextant International Fund. It trades about 0.13 of its potential returns per unit of risk. Sextant International Fund is currently generating about -0.02 per unit of risk. If you would invest 7,915 in Kinetics Paradigm Fund on December 4, 2024 and sell it today you would earn a total of 7,669 from holding Kinetics Paradigm Fund or generate 96.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Sextant International Fund
Performance |
| Timeline |
| Kinetics Paradigm |
| Sextant International |
Kinetics Paradigm and Sextant International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Sextant International
The main advantage of trading using opposite Kinetics Paradigm and Sextant International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Sextant 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 Sextant International will offset losses from the drop in Sextant International's long position.| Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. Guidemark Large Cap | Kinetics Paradigm vs. Dodge Cox Stock | Kinetics Paradigm vs. Knights Of Umbus |
| Sextant International vs. Sextant International Fund | Sextant International vs. Sextant Growth Fund | Sextant International vs. Sextant Global High | Sextant International vs. Sextant Bond Income |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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