Correlation Between Kinetics Alternative and Lind Capital
Can any of the company-specific risk be diversified away by investing in both Kinetics Alternative and Lind Capital 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 Alternative and Lind Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Alternative Income and Lind Capital Partners, you can compare the effects of market volatilities on Kinetics Alternative and Lind Capital 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 Alternative with a short position of Lind Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Alternative and Lind Capital.
Diversification Opportunities for Kinetics Alternative and Lind Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinetics and Lind is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Alternative Income and Lind Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lind Capital Partners and Kinetics Alternative 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 Alternative Income are associated (or correlated) with Lind Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lind Capital Partners has no effect on the direction of Kinetics Alternative i.e., Kinetics Alternative and Lind Capital go up and down completely randomly.
Pair Corralation between Kinetics Alternative and Lind Capital
Assuming the 90 days horizon Kinetics Alternative is expected to generate 1.66 times less return on investment than Lind Capital. But when comparing it to its historical volatility, Kinetics Alternative Income is 3.36 times less risky than Lind Capital. It trades about 0.17 of its potential returns per unit of risk. Lind Capital Partners is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Lind Capital Partners on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Lind Capital Partners or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 12.32% |
| Values | Daily Returns |
Kinetics Alternative Income vs. Lind Capital Partners
Performance |
| Timeline |
| Kinetics Alternative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lind Capital Partners |
Kinetics Alternative and Lind Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Alternative and Lind Capital
The main advantage of trading using opposite Kinetics Alternative and Lind Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Alternative position performs unexpectedly, Lind Capital 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 Lind Capital will offset losses from the drop in Lind Capital's long position.| Kinetics Alternative vs. Lind Capital Partners | Kinetics Alternative vs. Transamerica Funds | Kinetics Alternative vs. T Rowe Price | Kinetics Alternative vs. Dreyfusstandish Global Fixed |
| Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard 500 Index | Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard Total Stock |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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