Correlation Between Kinetics Small and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Kinetics Small and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Strategic Asset.
Diversification Opportunities for Kinetics Small and Strategic Asset
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Strategic is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Kinetics Small i.e., Kinetics Small and Strategic Asset go up and down completely randomly.
Pair Corralation between Kinetics Small and Strategic Asset
Assuming the 90 days horizon Kinetics Small Cap is expected to generate 1.81 times more return on investment than Strategic Asset. However, Kinetics Small is 1.81 times more volatile than Strategic Asset Management. It trades about -0.03 of its potential returns per unit of risk. Strategic Asset Management is currently generating about -0.1 per unit of risk. If you would invest 19,262 in Kinetics Small Cap on January 17, 2025 and sell it today you would lose (759.00) from holding Kinetics Small Cap or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Small Cap vs. Strategic Asset Management
Performance |
| Timeline |
| Kinetics Small Cap |
| Strategic Asset Mana |
Kinetics Small and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Strategic Asset
The main advantage of trading using opposite Kinetics Small and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Kinetics Small vs. Prudential High Yield | Kinetics Small vs. T Rowe Price | Kinetics Small vs. California High Yield Municipal | Kinetics Small vs. Blackrock High Yield |
| Strategic Asset vs. American Funds The | Strategic Asset vs. American Funds The | Strategic Asset vs. Income Fund Of | Strategic Asset vs. Income Fund Of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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