Correlation Between Kinetics Paradigm and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Oklahoma Municipal 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 Oklahoma Municipal 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 Oklahoma Municipal Fund, you can compare the effects of market volatilities on Kinetics Paradigm and Oklahoma Municipal 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 Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Oklahoma Municipal.
Diversification Opportunities for Kinetics Paradigm and Oklahoma Municipal
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetics and Oklahoma is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal 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 Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Oklahoma Municipal
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 7.71 times more return on investment than Oklahoma Municipal. However, Kinetics Paradigm is 7.71 times more volatile than Oklahoma Municipal Fund. It trades about 0.64 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.16 per unit of risk. If you would invest 13,233 in Kinetics Paradigm Fund on August 25, 2024 and sell it today you would earn a total of 6,171 from holding Kinetics Paradigm Fund or generate 46.63% 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. Oklahoma Municipal Fund
Performance |
| Timeline |
| Kinetics Paradigm |
| Oklahoma Municipal |
Kinetics Paradigm and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Oklahoma Municipal
The main advantage of trading using opposite Kinetics Paradigm and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Kinetics Paradigm vs. Kinetics Global Fund | Kinetics Paradigm vs. Kinetics Global Fund | Kinetics Paradigm vs. Kinetics Internet Fund | Kinetics Paradigm vs. Kinetics Global Fund |
| Oklahoma Municipal vs. Growth Fund Of | Oklahoma Municipal vs. Champlain Mid Cap | Oklahoma Municipal vs. Victory Rs Growth | Oklahoma Municipal vs. Eip Growth And |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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