Correlation Between Horizon Kinetics and IShares Trust
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and IShares Trust 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 Horizon Kinetics and IShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics Medical and iShares Trust , you can compare the effects of market volatilities on Horizon Kinetics and IShares Trust 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 Horizon Kinetics with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and IShares Trust.
Diversification Opportunities for Horizon Kinetics and IShares Trust
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Horizon and IShares is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Medical and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust and Horizon Kinetics 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 Horizon Kinetics Medical are associated (or correlated) with IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and IShares Trust go up and down completely randomly.
Pair Corralation between Horizon Kinetics and IShares Trust
Given the investment horizon of 90 days Horizon Kinetics Medical is expected to under-perform the IShares Trust. But the etf apears to be less risky and, when comparing its historical volatility, Horizon Kinetics Medical is 1.4 times less risky than IShares Trust. The etf trades about -0.01 of its potential returns per unit of risk. The iShares Trust is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,136 in iShares Trust on August 26, 2024 and sell it today you would earn a total of 932.00 from holding iShares Trust or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.35% |
| Values | Daily Returns |
Horizon Kinetics Medical vs. iShares Trust
Performance |
| Timeline |
| Horizon Kinetics Medical |
| iShares Trust |
Horizon Kinetics and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and IShares Trust
The main advantage of trading using opposite Horizon Kinetics and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, IShares Trust 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 IShares Trust will offset losses from the drop in IShares Trust's long position.| Horizon Kinetics vs. Global X Clean | Horizon Kinetics vs. Global X Renewable | Horizon Kinetics vs. Global X Thematic | Horizon Kinetics vs. Global X AgTech |
| IShares Trust vs. First Trust Exchange Traded | IShares Trust vs. Ultimus Managers Trust | IShares Trust vs. Horizon Kinetics Medical | IShares Trust vs. Harbor Health Care |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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