Correlation Between Tfa Alphagen and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and Kinetics Global 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 Tfa Alphagen and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Kinetics Global Fund, you can compare the effects of market volatilities on Tfa Alphagen and Kinetics Global 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 Tfa Alphagen with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Kinetics Global.
Diversification Opportunities for Tfa Alphagen and Kinetics Global
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tfa and Kinetics is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Kinetics Global go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Kinetics Global
Assuming the 90 days horizon Tfa Alphagen Growth is expected to under-perform the Kinetics Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tfa Alphagen Growth is 1.24 times less risky than Kinetics Global. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Kinetics Global Fund is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,544 in Kinetics Global Fund on October 11, 2024 and sell it today you would lose (28.00) from holding Kinetics Global Fund or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Kinetics Global Fund
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Kinetics Global |
Tfa Alphagen and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Kinetics Global
The main advantage of trading using opposite Tfa Alphagen and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen position performs unexpectedly, Kinetics Global 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 Global will offset losses from the drop in Kinetics Global's long position.| Tfa Alphagen vs. Ishares Municipal Bond | Tfa Alphagen vs. Morningstar Municipal Bond | Tfa Alphagen vs. Gurtin California Muni | Tfa Alphagen vs. Inverse Government Long |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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