Correlation Between Kinetics Small and Blackstone Alternative
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and Blackstone Alternative 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 Blackstone Alternative 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 Blackstone Alternative Multi Strategy, you can compare the effects of market volatilities on Kinetics Small and Blackstone Alternative 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 Blackstone Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Blackstone Alternative.
Diversification Opportunities for Kinetics Small and Blackstone Alternative
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Blackstone is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Blackstone Alternative Multi S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Alternative 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 Blackstone Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Alternative has no effect on the direction of Kinetics Small i.e., Kinetics Small and Blackstone Alternative go up and down completely randomly.
Pair Corralation between Kinetics Small and Blackstone Alternative
Assuming the 90 days horizon Kinetics Small Cap is expected to generate 12.44 times more return on investment than Blackstone Alternative. However, Kinetics Small is 12.44 times more volatile than Blackstone Alternative Multi Strategy. It trades about 0.35 of its potential returns per unit of risk. Blackstone Alternative Multi Strategy is currently generating about 0.15 per unit of risk. If you would invest 18,792 in Kinetics Small Cap on September 3, 2024 and sell it today you would earn a total of 4,006 from holding Kinetics Small Cap or generate 21.32% 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. Blackstone Alternative Multi S
Performance |
| Timeline |
| Kinetics Small Cap |
| Blackstone Alternative |
Kinetics Small and Blackstone Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Blackstone Alternative
The main advantage of trading using opposite Kinetics Small and Blackstone Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, Blackstone Alternative 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 Blackstone Alternative will offset losses from the drop in Blackstone Alternative's long position.| Kinetics Small vs. General Money Market | Kinetics Small vs. Matson Money Equity | Kinetics Small vs. Ashmore Emerging Markets | Kinetics Small vs. Aig Government Money |
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 CEOs Directory module to screen CEOs from public companies around the world.
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