Correlation Between Kinetics Paradigm and Grizzly Short
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Grizzly Short 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 Grizzly Short 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 Grizzly Short Fund, you can compare the effects of market volatilities on Kinetics Paradigm and Grizzly Short 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 Grizzly Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Grizzly Short.
Diversification Opportunities for Kinetics Paradigm and Grizzly Short
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and Grizzly is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Grizzly Short Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grizzly Short 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 Grizzly Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grizzly Short has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Grizzly Short go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Grizzly Short
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.55 times more return on investment than Grizzly Short. However, Kinetics Paradigm is 3.55 times more volatile than Grizzly Short Fund. It trades about 0.44 of its potential returns per unit of risk. Grizzly Short Fund is currently generating about -0.3 per unit of risk. If you would invest 13,841 in Kinetics Paradigm Fund on August 31, 2024 and sell it today you would earn a total of 4,778 from holding Kinetics Paradigm Fund or generate 34.52% 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. Grizzly Short Fund
Performance |
| Timeline |
| Kinetics Paradigm |
| Grizzly Short |
Kinetics Paradigm and Grizzly Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Grizzly Short
The main advantage of trading using opposite Kinetics Paradigm and Grizzly Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Grizzly Short 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 Grizzly Short will offset losses from the drop in Grizzly Short'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 |
| Grizzly Short vs. Needham Aggressive Growth | Grizzly Short vs. Pace High Yield | Grizzly Short vs. Artisan High Income | Grizzly Short vs. Aquila Three Peaks |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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