Correlation Between Elevation Series and Horizon Kinetics
Can any of the company-specific risk be diversified away by investing in both Elevation Series and Horizon Kinetics 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 Elevation Series and Horizon Kinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elevation Series Trust and Horizon Kinetics Medical, you can compare the effects of market volatilities on Elevation Series and Horizon Kinetics 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 Elevation Series with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevation Series and Horizon Kinetics.
Diversification Opportunities for Elevation Series and Horizon Kinetics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elevation and Horizon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Elevation Series Trust and Horizon Kinetics Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Medical and Elevation Series 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 Elevation Series Trust are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Medical has no effect on the direction of Elevation Series i.e., Elevation Series and Horizon Kinetics go up and down completely randomly.
Pair Corralation between Elevation Series and Horizon Kinetics
Given the investment horizon of 90 days Elevation Series Trust is expected to generate 1.08 times more return on investment than Horizon Kinetics. However, Elevation Series is 1.08 times more volatile than Horizon Kinetics Medical. It trades about 0.1 of its potential returns per unit of risk. Horizon Kinetics Medical is currently generating about -0.01 per unit of risk. If you would invest 4,807 in Elevation Series Trust on September 2, 2024 and sell it today you would earn a total of 1,281 from holding Elevation Series Trust or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.12% |
| Values | Daily Returns |
Elevation Series Trust vs. Horizon Kinetics Medical
Performance |
| Timeline |
| Elevation Series Trust |
| Horizon Kinetics Medical |
Elevation Series and Horizon Kinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elevation Series and Horizon Kinetics
The main advantage of trading using opposite Elevation Series and Horizon Kinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevation Series position performs unexpectedly, Horizon Kinetics 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 Horizon Kinetics will offset losses from the drop in Horizon Kinetics' long position.| Elevation Series vs. Aquagold International | Elevation Series vs. Thrivent High Yield | Elevation Series vs. Morningstar Unconstrained Allocation | Elevation Series vs. High Yield Municipal Fund |
| Horizon Kinetics vs. Harbor Health Care | Horizon Kinetics vs. Myriad Genetics | Horizon Kinetics vs. Genenta Science SpA |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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