Correlation Between Sit Mutual and Kinetics Market
Can any of the company-specific risk be diversified away by investing in both Sit Mutual 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 Sit Mutual and Kinetics Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Mutual Funds and Kinetics Market Opportunities, you can compare the effects of market volatilities on Sit Mutual 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 Sit Mutual with a short position of Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Mutual and Kinetics Market.
Diversification Opportunities for Sit Mutual and Kinetics Market
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sit and Kinetics is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sit Mutual Funds 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 Sit Mutual 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 Sit Mutual Funds 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 Sit Mutual i.e., Sit Mutual and Kinetics Market go up and down completely randomly.
Pair Corralation between Sit Mutual and Kinetics Market
Assuming the 90 days horizon Sit Mutual is expected to generate 22.72 times less return on investment than Kinetics Market. But when comparing it to its historical volatility, Sit Mutual Funds is 12.83 times less risky than Kinetics Market. It trades about 0.14 of its potential returns per unit of risk. Kinetics Market Opportunities is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,697 in Kinetics Market Opportunities on September 1, 2024 and sell it today you would earn a total of 4,272 from holding Kinetics Market Opportunities or generate 90.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sit Mutual Funds vs. Kinetics Market Opportunities
Performance |
| Timeline |
| Sit Mutual Funds |
| Kinetics Market Oppo |
Sit Mutual and Kinetics Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Mutual and Kinetics Market
The main advantage of trading using opposite Sit Mutual and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Mutual 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.| Sit Mutual vs. Alternative Asset Allocation | Sit Mutual vs. Legg Mason Bw | Sit Mutual vs. T Rowe Price | Sit Mutual vs. Pace Large Growth |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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