Correlation Between Kinetics Paradigm and Nuveen Short-duration
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Nuveen Short-duration 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 Nuveen Short-duration 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 Nuveen Short Duration High, you can compare the effects of market volatilities on Kinetics Paradigm and Nuveen Short-duration 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 Nuveen Short-duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Nuveen Short-duration.
Diversification Opportunities for Kinetics Paradigm and Nuveen Short-duration
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetics and Nuveen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Nuveen Short Duration High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Short Duration 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 Nuveen Short-duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Short Duration has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Nuveen Short-duration go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Nuveen Short-duration
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 15.61 times more return on investment than Nuveen Short-duration. However, Kinetics Paradigm is 15.61 times more volatile than Nuveen Short Duration High. It trades about 0.44 of its potential returns per unit of risk. Nuveen Short Duration High is currently generating about 0.27 per unit of risk. If you would invest 13,261 in Kinetics Paradigm Fund on August 29, 2024 and sell it today you would earn a total of 4,680 from holding Kinetics Paradigm Fund or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Nuveen Short Duration High
Performance |
| Timeline |
| Kinetics Paradigm |
| Nuveen Short Duration |
Kinetics Paradigm and Nuveen Short-duration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Nuveen Short-duration
The main advantage of trading using opposite Kinetics Paradigm and Nuveen Short-duration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Nuveen Short-duration 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 Nuveen Short-duration will offset losses from the drop in Nuveen Short-duration's long position.| Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. Midcap Fund Class |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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