Correlation Between Kinetics Paradigm and Fidelity Small
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Fidelity 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 Kinetics Paradigm and Fidelity Small 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 Fidelity Small Cap, you can compare the effects of market volatilities on Kinetics Paradigm and Fidelity 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 Kinetics Paradigm with a short position of Fidelity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Fidelity Small.
Diversification Opportunities for Kinetics Paradigm and Fidelity Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Fidelity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small Cap 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 Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Cap has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Fidelity Small go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Fidelity Small
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 1.45 times more return on investment than Fidelity Small. However, Kinetics Paradigm is 1.45 times more volatile than Fidelity Small Cap. It trades about 0.08 of its potential returns per unit of risk. Fidelity Small Cap is currently generating about 0.06 per unit of risk. If you would invest 10,015 in Kinetics Paradigm Fund on September 1, 2024 and sell it today you would earn a total of 8,270 from holding Kinetics Paradigm Fund or generate 82.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 31.11% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Fidelity Small Cap
Performance |
| Timeline |
| Kinetics Paradigm |
| Fidelity Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetics Paradigm and Fidelity Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Fidelity Small
The main advantage of trading using opposite Kinetics Paradigm and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Fidelity 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 Fidelity Small will offset losses from the drop in Fidelity Small'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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