Correlation Between Kinetics Small and Centaur Total
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and Centaur Total 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 Centaur Total 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 Centaur Total Return, you can compare the effects of market volatilities on Kinetics Small and Centaur Total 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 Centaur Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Centaur Total.
Diversification Opportunities for Kinetics Small and Centaur Total
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Centaur is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Centaur Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Total Return 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 Centaur Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Total Return has no effect on the direction of Kinetics Small i.e., Kinetics Small and Centaur Total go up and down completely randomly.
Pair Corralation between Kinetics Small and Centaur Total
If you would invest 599.00 in Centaur Total Return on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Centaur Total Return or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kinetics Small Cap vs. Centaur Total Return
Performance |
| Timeline |
| Kinetics Small Cap |
| Centaur Total Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetics Small and Centaur Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Centaur Total
The main advantage of trading using opposite Kinetics Small and Centaur Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, Centaur Total 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 Centaur Total will offset losses from the drop in Centaur Total's long position.| Kinetics Small vs. Aqr Small Cap | Kinetics Small vs. Pace Smallmedium Value | Kinetics Small vs. Lebenthal Lisanti Small | Kinetics Small vs. Old Westbury Small |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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