Correlation Between Pimco Trends and Kinetics Market
Can any of the company-specific risk be diversified away by investing in both Pimco Trends and Kinetics Market 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 Pimco Trends and Kinetics Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Trends Managed and Kinetics Market Opportunities, you can compare the effects of market volatilities on Pimco Trends and Kinetics Market 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 Pimco Trends with a short position of Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Trends and Kinetics Market.
Diversification Opportunities for Pimco Trends and Kinetics Market
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pimco and Kinetics is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Trends Managed and Kinetics Market Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Market Oppo and Pimco Trends 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 Pimco Trends Managed are associated (or correlated) with Kinetics Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Market Oppo has no effect on the direction of Pimco Trends i.e., Pimco Trends and Kinetics Market go up and down completely randomly.
Pair Corralation between Pimco Trends and Kinetics Market
Assuming the 90 days horizon Pimco Trends is expected to generate 55.88 times less return on investment than Kinetics Market. But when comparing it to its historical volatility, Pimco Trends Managed is 4.13 times less risky than Kinetics Market. It trades about 0.03 of its potential returns per unit of risk. Kinetics Market Opportunities is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 6,763 in Kinetics Market Opportunities on August 30, 2024 and sell it today you would earn a total of 2,325 from holding Kinetics Market Opportunities or generate 34.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Trends Managed vs. Kinetics Market Opportunities
Performance |
| Timeline |
| Pimco Trends Managed |
| Kinetics Market Oppo |
Pimco Trends and Kinetics Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Trends and Kinetics Market
The main advantage of trading using opposite Pimco Trends and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Trends position performs unexpectedly, Kinetics Market 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 Market will offset losses from the drop in Kinetics Market's long position.| Pimco Trends vs. Victory Global Natural | Pimco Trends vs. Calvert Global Energy | Pimco Trends vs. Franklin Natural Resources | Pimco Trends vs. Hennessy Bp Energy |
| Kinetics Market vs. Kinetics Global Fund | Kinetics Market vs. Kinetics Global Fund | Kinetics Market vs. Kinetics Paradigm Fund | Kinetics Market vs. Kinetics Internet Fund |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |