Correlation Between Kinetics Paradigm and Cognios Market
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Cognios 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 Kinetics Paradigm and Cognios Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Paradigm Fund and Cognios Market Neutral, you can compare the effects of market volatilities on Kinetics Paradigm and Cognios 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 Kinetics Paradigm with a short position of Cognios Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Cognios Market.
Diversification Opportunities for Kinetics Paradigm and Cognios Market
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Cognios is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Cognios Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognios Market Neutral and Kinetics Paradigm 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 Kinetics Paradigm Fund are associated (or correlated) with Cognios Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cognios Market Neutral has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Cognios Market go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Cognios Market
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 41.45 times more return on investment than Cognios Market. However, Kinetics Paradigm is 41.45 times more volatile than Cognios Market Neutral. It trades about 0.41 of its potential returns per unit of risk. Cognios Market Neutral is currently generating about -0.19 per unit of risk. If you would invest 13,896 in Kinetics Paradigm Fund on September 1, 2024 and sell it today you would earn a total of 4,389 from holding Kinetics Paradigm Fund or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Cognios Market Neutral
Performance |
| Timeline |
| Kinetics Paradigm |
| Cognios Market Neutral |
Kinetics Paradigm and Cognios Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Cognios Market
The main advantage of trading using opposite Kinetics Paradigm and Cognios Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Cognios 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 Cognios Market will offset losses from the drop in Cognios Market's long position.| Kinetics Paradigm vs. Kinetics Small Cap | Kinetics Paradigm vs. Marsico 21st Century | Kinetics Paradigm vs. Royce Smaller Companies Growth | Kinetics Paradigm vs. Hodges Fund Retail |
| Cognios Market vs. Aqr Long Short Equity | Cognios Market vs. Aqr Equity Market | Cognios Market vs. Cognios Market Neutral | Cognios Market vs. Aqr Managed Futures |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |