Correlation Between Voya Russia and Kinetics Small
Can any of the company-specific risk be diversified away by investing in both Voya Russia and Kinetics Small 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 Voya Russia and Kinetics Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Russia Fund and Kinetics Small Cap, you can compare the effects of market volatilities on Voya Russia and Kinetics Small 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 Voya Russia with a short position of Kinetics Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and Kinetics Small.
Diversification Opportunities for Voya Russia and Kinetics Small
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Kinetics is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and Kinetics Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Small Cap and Voya Russia 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 Voya Russia Fund are associated (or correlated) with Kinetics Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Small Cap has no effect on the direction of Voya Russia i.e., Voya Russia and Kinetics Small go up and down completely randomly.
Pair Corralation between Voya Russia and Kinetics Small
If you would invest 14,141 in Kinetics Small Cap on August 31, 2024 and sell it today you would earn a total of 8,425 from holding Kinetics Small Cap or generate 59.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Voya Russia Fund vs. Kinetics Small Cap
Performance |
| Timeline |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kinetics Small Cap |
Voya Russia and Kinetics Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Russia and Kinetics Small
The main advantage of trading using opposite Voya Russia and Kinetics Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Russia position performs unexpectedly, Kinetics Small 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 Kinetics Small will offset losses from the drop in Kinetics Small's long position.| Voya Russia vs. T Rowe Price | Voya Russia vs. Tax Managed Large Cap | Voya Russia vs. Enhanced Large Pany | Voya Russia vs. Strategic Allocation Aggressive |
| Kinetics Small vs. Kinetics Paradigm Fund | Kinetics Small vs. Kinetics Market Opportunities | Kinetics Small vs. Pear Tree Polaris | Kinetics Small vs. Amg Managers Loomis |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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