Correlation Between Kinetics Small and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and Amg Managers 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 Amg Managers 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 Amg Managers Fairpointe, you can compare the effects of market volatilities on Kinetics Small and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Amg Managers.
Diversification Opportunities for Kinetics Small and Amg Managers
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Amg is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Amg Managers Fairpointe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Fairpointe 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 Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Fairpointe has no effect on the direction of Kinetics Small i.e., Kinetics Small and Amg Managers go up and down completely randomly.
Pair Corralation between Kinetics Small and Amg Managers
Assuming the 90 days horizon Kinetics Small Cap is expected to generate 2.72 times more return on investment than Amg Managers. However, Kinetics Small is 2.72 times more volatile than Amg Managers Fairpointe. It trades about 0.4 of its potential returns per unit of risk. Amg Managers Fairpointe is currently generating about 0.33 per unit of risk. If you would invest 18,428 in Kinetics Small Cap on August 31, 2024 and sell it today you would earn a total of 4,723 from holding Kinetics Small Cap or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Small Cap vs. Amg Managers Fairpointe
Performance |
| Timeline |
| Kinetics Small Cap |
| Amg Managers Fairpointe |
Kinetics Small and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Amg Managers
The main advantage of trading using opposite Kinetics Small and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Kinetics Small vs. Abr 7525 Volatility | Kinetics Small vs. T Rowe Price | Kinetics Small vs. Rbb Fund | Kinetics Small vs. Iaadx |
| Amg Managers vs. Eic Value Fund | Amg Managers vs. Auer Growth Fund | Amg Managers vs. Gmo Treasury Fund | Amg Managers vs. Artisan Thematic Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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