Correlation Between Kinetics Paradigm and Victory High
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Victory High 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 Victory High 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 Victory High Yield, you can compare the effects of market volatilities on Kinetics Paradigm and Victory High 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 Victory High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Victory High.
Diversification Opportunities for Kinetics Paradigm and Victory High
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Victory is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Victory High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory High Yield 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 Victory High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory High Yield has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Victory High go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Victory High
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 7.75 times more return on investment than Victory High. However, Kinetics Paradigm is 7.75 times more volatile than Victory High Yield. It trades about 0.17 of its potential returns per unit of risk. Victory High Yield is currently generating about 0.21 per unit of risk. If you would invest 7,955 in Kinetics Paradigm Fund on September 1, 2024 and sell it today you would earn a total of 10,330 from holding Kinetics Paradigm Fund or generate 129.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Victory High Yield
Performance |
| Timeline |
| Kinetics Paradigm |
| Victory High Yield |
Kinetics Paradigm and Victory High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Victory High
The main advantage of trading using opposite Kinetics Paradigm and Victory High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Victory High 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 Victory High will offset losses from the drop in Victory High'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 |
| Victory High vs. Victory Rs International | Victory High vs. Victory High Yield | Victory High vs. Victory Sycamore Established | Victory High vs. Victory Integrity Discovery |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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