Correlation Between Siit Small and Kinetics Small
Can any of the company-specific risk be diversified away by investing in both Siit Small and Kinetics Small 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 Siit Small and Kinetics Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Kinetics Small Cap, you can compare the effects of market volatilities on Siit Small and Kinetics Small 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 Siit Small with a short position of Kinetics Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Kinetics Small.
Diversification Opportunities for Siit Small and Kinetics Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Kinetics is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Kinetics Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Small Cap and Siit Small 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 Siit Small Mid are associated (or correlated) with Kinetics Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Small Cap has no effect on the direction of Siit Small i.e., Siit Small and Kinetics Small go up and down completely randomly.
Pair Corralation between Siit Small and Kinetics Small
Assuming the 90 days horizon Siit Small is expected to generate 1.36 times less return on investment than Kinetics Small. But when comparing it to its historical volatility, Siit Small Mid is 1.44 times less risky than Kinetics Small. It trades about 0.06 of its potential returns per unit of risk. Kinetics Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13,448 in Kinetics Small Cap on September 12, 2024 and sell it today you would earn a total of 6,458 from holding Kinetics Small Cap or generate 48.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Kinetics Small Cap
Performance |
| Timeline |
| Siit Small Mid |
| Kinetics Small Cap |
Siit Small and Kinetics Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Kinetics Small
The main advantage of trading using opposite Siit Small and Kinetics Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Kinetics Small 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 Small will offset losses from the drop in Kinetics Small's long position.| Siit Small vs. Rationalpier 88 Convertible | Siit Small vs. Allianzgi Convertible Income | Siit Small vs. Gabelli Convertible And | Siit Small vs. Lord Abbett Convertible |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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