Correlation Between Ambrus Core and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Ambrus Core 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 Ambrus Core and Kinetics Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Kinetics Global Fund, you can compare the effects of market volatilities on Ambrus Core 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 Ambrus Core with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Kinetics Global.
Diversification Opportunities for Ambrus Core and Kinetics Global
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ambrus and Kinetics is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Ambrus Core 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 Ambrus Core Bond 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 Ambrus Core i.e., Ambrus Core and Kinetics Global go up and down completely randomly.
Pair Corralation between Ambrus Core and Kinetics Global
Assuming the 90 days horizon Ambrus Core is expected to generate 12.25 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Ambrus Core Bond is 7.72 times less risky than Kinetics Global. It trades about 0.13 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,118 in Kinetics Global Fund on September 3, 2024 and sell it today you would earn a total of 528.00 from holding Kinetics Global Fund or generate 47.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Kinetics Global Fund
Performance |
| Timeline |
| Ambrus Core Bond |
| Kinetics Global |
Ambrus Core and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Kinetics Global
The main advantage of trading using opposite Ambrus Core and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core 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.| Ambrus Core vs. Virtus High Yield | Ambrus Core vs. Pgim High Yield | Ambrus Core vs. Pioneer High Yield | Ambrus Core vs. Alpine High Yield |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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