Correlation Between Kinetics Spin-off and New Alternatives
Can any of the company-specific risk be diversified away by investing in both Kinetics Spin-off and New Alternatives 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 Spin-off and New Alternatives into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Spin Off And and New Alternatives Fund, you can compare the effects of market volatilities on Kinetics Spin-off and New Alternatives 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 Spin-off with a short position of New Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Spin-off and New Alternatives.
Diversification Opportunities for Kinetics Spin-off and New Alternatives
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and New is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Spin Off And and New Alternatives Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Alternatives and Kinetics Spin-off 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 Spin Off And are associated (or correlated) with New Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Alternatives has no effect on the direction of Kinetics Spin-off i.e., Kinetics Spin-off and New Alternatives go up and down completely randomly.
Pair Corralation between Kinetics Spin-off and New Alternatives
Assuming the 90 days horizon Kinetics Spin Off And is expected to generate 2.07 times more return on investment than New Alternatives. However, Kinetics Spin-off is 2.07 times more volatile than New Alternatives Fund. It trades about 0.24 of its potential returns per unit of risk. New Alternatives Fund is currently generating about 0.06 per unit of risk. If you would invest 1,913 in Kinetics Spin Off And on September 1, 2024 and sell it today you would earn a total of 2,869 from holding Kinetics Spin Off And or generate 149.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Spin Off And vs. New Alternatives Fund
Performance |
| Timeline |
| Kinetics Spin Off |
| New Alternatives |
Kinetics Spin-off and New Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Spin-off and New Alternatives
The main advantage of trading using opposite Kinetics Spin-off and New Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Spin-off position performs unexpectedly, New Alternatives 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 New Alternatives will offset losses from the drop in New Alternatives' long position.| Kinetics Spin-off vs. Kinetics Global Fund | Kinetics Spin-off vs. Kinetics Global Fund | Kinetics Spin-off vs. Kinetics Paradigm Fund | Kinetics Spin-off vs. Kinetics Internet Fund |
| New Alternatives vs. Guinness Atkinson Alternative | New Alternatives vs. Calvert Global Energy | New Alternatives vs. Portfolio 21 Global | New Alternatives vs. Green Century Balanced |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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