Correlation Between Kinetics Small and Touchstone Value
Can any of the company-specific risk be diversified away by investing in both Kinetics Small and Touchstone Value 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 Touchstone Value 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 Touchstone Value Fund, you can compare the effects of market volatilities on Kinetics Small and Touchstone Value 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 Touchstone Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Touchstone Value.
Diversification Opportunities for Kinetics Small and Touchstone Value
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Touchstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Touchstone Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Value 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 Touchstone Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Value has no effect on the direction of Kinetics Small i.e., Kinetics Small and Touchstone Value go up and down completely randomly.
Pair Corralation between Kinetics Small and Touchstone Value
Assuming the 90 days horizon Kinetics Small Cap is expected to generate 3.87 times more return on investment than Touchstone Value. However, Kinetics Small is 3.87 times more volatile than Touchstone Value Fund. It trades about 0.37 of its potential returns per unit of risk. Touchstone Value Fund is currently generating about 0.31 per unit of risk. If you would invest 18,487 in Kinetics Small Cap on September 1, 2024 and sell it today you would earn a total of 4,311 from holding Kinetics Small Cap or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kinetics Small Cap vs. Touchstone Value Fund
Performance |
| Timeline |
| Kinetics Small Cap |
| Touchstone Value |
Kinetics Small and Touchstone Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Small and Touchstone Value
The main advantage of trading using opposite Kinetics Small and Touchstone Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Small position performs unexpectedly, Touchstone Value 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 Touchstone Value will offset losses from the drop in Touchstone Value's long position.| Kinetics Small vs. Leggmason Partners Institutional | Kinetics Small vs. Scharf Global Opportunity | Kinetics Small vs. Qs Large Cap | Kinetics Small vs. Abr 7525 Volatility |
| Touchstone Value vs. Tfa Alphagen Growth | Touchstone Value vs. Chase Growth Fund | Touchstone Value vs. Kinetics Small Cap | Touchstone Value vs. L Abbett Growth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |