Correlation Between Kinetics Small and Oberweis Emerging
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and Oberweis Emerging 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 Small and Oberweis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Small Cap and Oberweis Emerging Markets, you can compare the effects of market volatilities on Kinetics Small and Oberweis Emerging 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 Small with a short position of Oberweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Oberweis Emerging.
Diversification Opportunities for Kinetics Small and Oberweis Emerging
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Oberweis is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Oberweis Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis Emerging Markets and Kinetics Small 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 Small Cap are associated (or correlated) with Oberweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis Emerging Markets has no effect on the direction of Kinetics Small i.e., Kinetics Small and Oberweis Emerging go up and down completely randomly.
Pair Corralation between Kinetics Small and Oberweis Emerging
Assuming the 90 days horizon Kinetics Small Cap is expected to generate 0.91 times more return on investment than Oberweis Emerging. However, Kinetics Small Cap is 1.1 times less risky than Oberweis Emerging. It trades about 0.28 of its potential returns per unit of risk. Oberweis Emerging Markets is currently generating about -0.05 per unit of risk. If you would invest 11,476 in Kinetics Small Cap on September 1, 2024 and sell it today you would earn a total of 11,090 from holding Kinetics Small Cap or generate 96.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kinetics Small Cap vs. Oberweis Emerging Markets
Performance |
| Timeline |
| Kinetics Small Cap |
| Oberweis Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetics Small and Oberweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Oberweis Emerging
The main advantage of trading using opposite Kinetics Small and Oberweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, Oberweis Emerging 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 Oberweis Emerging will offset losses from the drop in Oberweis Emerging's long position.| Kinetics Small vs. Kinetics Paradigm Fund | Kinetics Small vs. Kinetics Market Opportunities | Kinetics Small vs. Pear Tree Polaris | Kinetics Small vs. Amg Managers Loomis |
| Oberweis Emerging vs. Pimco Funds | Oberweis Emerging vs. Dreyfus Institutional Reserves | Oberweis Emerging vs. Cref Money Market | Oberweis Emerging vs. Jpmorgan Trust I |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |