Correlation Between Cref Inflation-linked and Kinetics Market
Can any of the company-specific risk be diversified away by investing in both Cref Inflation-linked 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 Cref Inflation-linked and Kinetics Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Kinetics Market Opportunities, you can compare the effects of market volatilities on Cref Inflation-linked 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 Cref Inflation-linked with a short position of Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation-linked and Kinetics Market.
Diversification Opportunities for Cref Inflation-linked and Kinetics Market
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cref and Kinetics is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond 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 Cref Inflation-linked 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 Cref Inflation Linked Bond 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 Cref Inflation-linked i.e., Cref Inflation-linked and Kinetics Market go up and down completely randomly.
Pair Corralation between Cref Inflation-linked and Kinetics Market
Assuming the 90 days trading horizon Cref Inflation-linked is expected to generate 4.64 times less return on investment than Kinetics Market. But when comparing it to its historical volatility, Cref Inflation Linked Bond is 9.84 times less risky than Kinetics Market. It trades about 0.3 of its potential returns per unit of risk. Kinetics Market Opportunities is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7,593 in Kinetics Market Opportunities on November 4, 2024 and sell it today you would earn a total of 355.00 from holding Kinetics Market Opportunities or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Kinetics Market Opportunities
Performance |
| Timeline |
| Cref Inflation Linked |
| Kinetics Market Oppo |
Cref Inflation-linked and Kinetics Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation-linked and Kinetics Market
The main advantage of trading using opposite Cref Inflation-linked and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation-linked 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.| Cref Inflation-linked vs. Ab Bond Inflation | Cref Inflation-linked vs. Goldman Sachs Short | Cref Inflation-linked vs. Angel Oak Financial | Cref Inflation-linked vs. Versatile Bond Portfolio |
| Kinetics Market vs. Goldman Sachs Technology | Kinetics Market vs. Blackrock Science Technology | Kinetics Market vs. Pgim Jennison Technology | Kinetics Market vs. Columbia Global Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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