Correlation Between Kinetics Small and First Trust
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and First Trust 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 First Trust 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 First Trust Energy, you can compare the effects of market volatilities on Kinetics Small and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and First Trust.
Diversification Opportunities for Kinetics Small and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and First Trust Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Energy 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Energy has no effect on the direction of Kinetics Small i.e., Kinetics Small and First Trust go up and down completely randomly.
Pair Corralation between Kinetics Small and First Trust
If you would invest 18,842 in Kinetics Small Cap on November 28, 2024 and sell it today you would earn a total of 24.00 from holding Kinetics Small Cap or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kinetics Small Cap vs. First Trust Energy
Performance |
| Timeline |
| Kinetics Small Cap |
| First Trust Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kinetics Small and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and First Trust
The main advantage of trading using opposite Kinetics Small and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Kinetics Small vs. Dreyfusstandish Global Fixed | Kinetics Small vs. Gmo Global Equity | Kinetics Small vs. Rationalrgn Hedged Equity | Kinetics Small vs. Crossmark Steward Equity |
| First Trust vs. Voya Global Equity | First Trust vs. Blackrock Enhanced Capital | First Trust vs. First Trust Intermediate | First Trust vs. Franklin Templeton Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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