Correlation Between Kinetics Paradigm and Harbor Overseas
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Harbor Overseas 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 Harbor Overseas 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 Harbor Overseas, you can compare the effects of market volatilities on Kinetics Paradigm and Harbor Overseas 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 Harbor Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Harbor Overseas.
Diversification Opportunities for Kinetics Paradigm and Harbor Overseas
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Harbor is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Harbor Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Overseas 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 Harbor Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Overseas has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Harbor Overseas go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Harbor Overseas
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.64 times more return on investment than Harbor Overseas. However, Kinetics Paradigm is 2.64 times more volatile than Harbor Overseas. It trades about 0.25 of its potential returns per unit of risk. Harbor Overseas is currently generating about 0.06 per unit of risk. If you would invest 8,101 in Kinetics Paradigm Fund on September 3, 2024 and sell it today you would earn a total of 10,184 from holding Kinetics Paradigm Fund or generate 125.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Harbor Overseas
Performance |
| Timeline |
| Kinetics Paradigm |
| Harbor Overseas |
Kinetics Paradigm and Harbor Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Harbor Overseas
The main advantage of trading using opposite Kinetics Paradigm and Harbor Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Harbor Overseas 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 Harbor Overseas will offset losses from the drop in Harbor Overseas' 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 |
| Harbor Overseas vs. Chase Growth Fund | Harbor Overseas vs. Qs Growth Fund | Harbor Overseas vs. Pace Smallmedium Growth | Harbor Overseas vs. Smallcap Growth Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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