Correlation Between Kinetics Paradigm and Thrivent Large
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Thrivent Large 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 Thrivent Large 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 Thrivent Large Cap, you can compare the effects of market volatilities on Kinetics Paradigm and Thrivent Large 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 Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Thrivent Large.
Diversification Opportunities for Kinetics Paradigm and Thrivent Large
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Thrivent is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap 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 Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Thrivent Large go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Thrivent Large
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 2.16 times more return on investment than Thrivent Large. However, Kinetics Paradigm is 2.16 times more volatile than Thrivent Large Cap. It trades about 0.76 of its potential returns per unit of risk. Thrivent Large Cap is currently generating about 0.17 per unit of risk. If you would invest 13,116 in Kinetics Paradigm Fund on August 24, 2024 and sell it today you would earn a total of 4,366 from holding Kinetics Paradigm Fund or generate 33.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. Thrivent Large Cap
Performance |
| Timeline |
| Kinetics Paradigm |
| Thrivent Large Cap |
Kinetics Paradigm and Thrivent Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Thrivent Large
The main advantage of trading using opposite Kinetics Paradigm and Thrivent Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Thrivent Large 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 Thrivent Large will offset losses from the drop in Thrivent Large'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 |
| Thrivent Large vs. Dodge Cox Stock | Thrivent Large vs. Upright Assets Allocation | Thrivent Large vs. Guidemark Large Cap | Thrivent Large vs. Falcon Focus Scv |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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