Correlation Between Americafirst Large and Kinetics Alternative
Can any of the company-specific risk be diversified away by investing in both Americafirst Large 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 Americafirst Large and Kinetics Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and Kinetics Alternative Income, you can compare the effects of market volatilities on Americafirst Large 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 Americafirst Large with a short position of Kinetics Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and Kinetics Alternative.
Diversification Opportunities for Americafirst Large and Kinetics Alternative
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Americafirst and Kinetics is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap and Kinetics Alternative Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Alternative and Americafirst Large 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 Americafirst Large Cap 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 Americafirst Large i.e., Americafirst Large and Kinetics Alternative go up and down completely randomly.
Pair Corralation between Americafirst Large and Kinetics Alternative
If you would invest 9,499 in Kinetics Alternative Income on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Kinetics Alternative Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Americafirst Large Cap vs. Kinetics Alternative Income
Performance |
| Timeline |
| Americafirst Large Cap |
| Kinetics Alternative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Americafirst Large and Kinetics Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and Kinetics Alternative
The main advantage of trading using opposite Americafirst Large and Kinetics Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large 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.| Americafirst Large vs. Scharf Global Opportunity | Americafirst Large vs. Ab Value Fund | Americafirst Large vs. Rbc Microcap Value | Americafirst Large vs. T Rowe Price |
| Kinetics Alternative vs. Shelton Emerging Markets | Kinetics Alternative vs. Extended Market Index | Kinetics Alternative vs. Pnc Emerging Markets | Kinetics Alternative vs. Rbc Emerging Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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