Correlation Between NYSE Composite and Kinetics Alternative
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Kinetics Alternative 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 NYSE Composite and Kinetics Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Kinetics Alternative Income, you can compare the effects of market volatilities on NYSE Composite and Kinetics Alternative 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 NYSE Composite with a short position of Kinetics Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Kinetics Alternative.
Diversification Opportunities for NYSE Composite and Kinetics Alternative
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and KINETICS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Kinetics Alternative Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Alternative and NYSE Composite 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 NYSE Composite are associated (or correlated) with Kinetics Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Alternative has no effect on the direction of NYSE Composite i.e., NYSE Composite and Kinetics Alternative go up and down completely randomly.
Pair Corralation between NYSE Composite and Kinetics Alternative
If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
NYSE Composite vs. Kinetics Alternative Income
Performance |
| Timeline |
NYSE Composite and Kinetics Alternative Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Kinetics Alternative Income
Pair trading matchups for Kinetics Alternative
Pair Trading with NYSE Composite and Kinetics Alternative
The main advantage of trading using opposite NYSE Composite and Kinetics Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Kinetics Alternative 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 Alternative will offset losses from the drop in Kinetics Alternative's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Kinetics Alternative vs. Pace Municipal Fixed | Kinetics Alternative vs. Bbh Intermediate Municipal | Kinetics Alternative vs. Franklin High Yield | Kinetics Alternative vs. Ab Impact Municipal |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |