Correlation Between Kinetics Paradigm and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Cohen Steers 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 Cohen Steers 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 Cohen Steers Global, you can compare the effects of market volatilities on Kinetics Paradigm and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Cohen Steers.
Diversification Opportunities for Kinetics Paradigm and Cohen Steers
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and Cohen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Global has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Cohen Steers go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Cohen Steers
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.17 times more return on investment than Cohen Steers. However, Kinetics Paradigm is 3.17 times more volatile than Cohen Steers Global. It trades about 0.27 of its potential returns per unit of risk. Cohen Steers Global is currently generating about 0.11 per unit of risk. If you would invest 8,416 in Kinetics Paradigm Fund on September 3, 2024 and sell it today you would earn a total of 9,869 from holding Kinetics Paradigm Fund or generate 117.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Cohen Steers Global
Performance |
| Timeline |
| Kinetics Paradigm |
| Cohen Steers Global |
Kinetics Paradigm and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Cohen Steers
The main advantage of trading using opposite Kinetics Paradigm and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. T Rowe Price | Cohen Steers vs. Nuveen High Income | Cohen Steers vs. Gmo High Yield | Cohen Steers vs. Lgm Risk Managed |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |