Correlation Between Kinetics Paradigm and GLOBAL
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By analyzing existing cross correlation between Kinetics Paradigm Fund and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Kinetics Paradigm and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and GLOBAL.
Diversification Opportunities for Kinetics Paradigm and GLOBAL
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetics and GLOBAL is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and GLOBAL go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and GLOBAL
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 4.06 times more return on investment than GLOBAL. However, Kinetics Paradigm is 4.06 times more volatile than GLOBAL PAYMENTS INC. It trades about 0.27 of its potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.02 per unit of risk. If you would invest 8,414 in Kinetics Paradigm Fund on September 1, 2024 and sell it today you would earn a total of 9,871 from holding Kinetics Paradigm Fund or generate 117.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Kinetics Paradigm Fund vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| Kinetics Paradigm |
| GLOBAL PAYMENTS INC |
Kinetics Paradigm and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and GLOBAL
The main advantage of trading using opposite Kinetics Paradigm and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL'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 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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