Correlation Between Horizon Kinetics and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and Exchange Traded 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 Exchange Traded 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 Exchange Traded Concepts, you can compare the effects of market volatilities on Horizon Kinetics and Exchange Traded 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 Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Exchange Traded.
Diversification Opportunities for Horizon Kinetics and Exchange Traded
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Horizon and Exchange is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Medical and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and Exchange Traded go up and down completely randomly.
Pair Corralation between Horizon Kinetics and Exchange Traded
Given the investment horizon of 90 days Horizon Kinetics Medical is expected to under-perform the Exchange Traded. But the etf apears to be less risky and, when comparing its historical volatility, Horizon Kinetics Medical is 2.06 times less risky than Exchange Traded. The etf trades about -0.11 of its potential returns per unit of risk. The Exchange Traded Concepts is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,287 in Exchange Traded Concepts on September 2, 2024 and sell it today you would earn a total of 375.00 from holding Exchange Traded Concepts or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics Medical vs. Exchange Traded Concepts
Performance |
| Timeline |
| Horizon Kinetics Medical |
| Exchange Traded Concepts |
Horizon Kinetics and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and Exchange Traded
The main advantage of trading using opposite Horizon Kinetics and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.| Horizon Kinetics vs. Harbor Health Care | Horizon Kinetics vs. Myriad Genetics | Horizon Kinetics vs. Genenta Science SpA |
| Exchange Traded vs. First Trust Exchange Traded | Exchange Traded vs. Ultimus Managers Trust | Exchange Traded vs. Horizon Kinetics Medical | Exchange Traded 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |