Correlation Between Kinetics Paradigm and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Amg Gwk 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 Amg Gwk 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 Amg Gwk Smallmid, you can compare the effects of market volatilities on Kinetics Paradigm and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Amg Gwk.
Diversification Opportunities for Kinetics Paradigm and Amg Gwk
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Amg is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid 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 Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Smallmid has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Amg Gwk go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Amg Gwk
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 1.27 times more return on investment than Amg Gwk. However, Kinetics Paradigm is 1.27 times more volatile than Amg Gwk Smallmid. It trades about 0.74 of its potential returns per unit of risk. Amg Gwk Smallmid is currently generating about 0.24 per unit of risk. If you would invest 13,116 in Kinetics Paradigm Fund on August 24, 2024 and sell it today you would earn a total of 4,366 from holding Kinetics Paradigm Fund or generate 33.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Amg Gwk Smallmid
Performance |
| Timeline |
| Kinetics Paradigm |
| Amg Gwk Smallmid |
Kinetics Paradigm and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Amg Gwk
The main advantage of trading using opposite Kinetics Paradigm and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk'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 |
| Amg Gwk vs. Dreyfus Institutional Reserves | Amg Gwk vs. Chestnut Street Exchange | Amg Gwk vs. Aim Investment Secs | Amg Gwk vs. Pioneer Money Market |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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