Correlation Between Horizon Kinetics and GLCN
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and GLCN 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 GLCN 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 GLCN, you can compare the effects of market volatilities on Horizon Kinetics and GLCN 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 GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and GLCN.
Diversification Opportunities for Horizon Kinetics and GLCN
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Horizon and GLCN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics SPAC and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN 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 GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and GLCN go up and down completely randomly.
Pair Corralation between Horizon Kinetics and GLCN
If you would invest 10,039 in Horizon Kinetics SPAC on September 13, 2024 and sell it today you would earn a total of 93.00 from holding Horizon Kinetics SPAC or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Horizon Kinetics SPAC vs. GLCN
Performance |
| Timeline |
| Horizon Kinetics SPAC |
| GLCN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Horizon Kinetics and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and GLCN
The main advantage of trading using opposite Horizon Kinetics and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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