Correlation Between Kinetics Paradigm and Sit Dividend
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Sit Dividend 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 Sit Dividend 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 Sit Dividend Growth, you can compare the effects of market volatilities on Kinetics Paradigm and Sit Dividend 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 Sit Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Sit Dividend.
Diversification Opportunities for Kinetics Paradigm and Sit Dividend
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kinetics and Sit is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Sit Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Dividend Growth 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 Sit Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Dividend Growth has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Sit Dividend go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Sit Dividend
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.28 times more return on investment than Sit Dividend. However, Kinetics Paradigm is 2.28 times more volatile than Sit Dividend Growth. It trades about 0.08 of its potential returns per unit of risk. Sit Dividend Growth is currently generating about 0.05 per unit of risk. If you would invest 7,814 in Kinetics Paradigm Fund on November 27, 2024 and sell it today you would earn a total of 7,233 from holding Kinetics Paradigm Fund or generate 92.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Sit Dividend Growth
Performance |
| Timeline |
| Kinetics Paradigm |
| Sit Dividend Growth |
Kinetics Paradigm and Sit Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Sit Dividend
The main advantage of trading using opposite Kinetics Paradigm and Sit Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Sit Dividend 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 Sit Dividend will offset losses from the drop in Sit Dividend'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 |
| Sit Dividend vs. Matthews Asia Dividend | Sit Dividend vs. Sit Dividend Growth | Sit Dividend vs. Jpmorgan Unconstrained Debt | Sit Dividend vs. Harbor Vertible Securities |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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