Correlation Between Horizon Kinetics and AdvisorShares Focused
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and AdvisorShares Focused 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 AdvisorShares Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics SPAC and AdvisorShares Focused Equity, you can compare the effects of market volatilities on Horizon Kinetics and AdvisorShares Focused 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 AdvisorShares Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and AdvisorShares Focused.
Diversification Opportunities for Horizon Kinetics and AdvisorShares Focused
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Horizon and AdvisorShares is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics SPAC and AdvisorShares Focused Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Focused 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 SPAC are associated (or correlated) with AdvisorShares Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Focused has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and AdvisorShares Focused go up and down completely randomly.
Pair Corralation between Horizon Kinetics and AdvisorShares Focused
Given the investment horizon of 90 days Horizon Kinetics SPAC is expected to generate 0.12 times more return on investment than AdvisorShares Focused. However, Horizon Kinetics SPAC is 8.2 times less risky than AdvisorShares Focused. It trades about 0.21 of its potential returns per unit of risk. AdvisorShares Focused Equity is currently generating about -0.09 per unit of risk. If you would invest 9,773 in Horizon Kinetics SPAC on November 1, 2024 and sell it today you would earn a total of 88.70 from holding Horizon Kinetics SPAC or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics SPAC vs. AdvisorShares Focused Equity
Performance |
| Timeline |
| Horizon Kinetics SPAC |
| AdvisorShares Focused |
Horizon Kinetics and AdvisorShares Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and AdvisorShares Focused
The main advantage of trading using opposite Horizon Kinetics and AdvisorShares Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, AdvisorShares Focused 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 AdvisorShares Focused will offset losses from the drop in AdvisorShares Focused's long position.| Horizon Kinetics vs. Freedom Day Dividend | Horizon Kinetics vs. Franklin Templeton ETF | Horizon Kinetics vs. iShares MSCI China | Horizon Kinetics vs. Tidal Trust II |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |