Correlation Between Kinetics Paradigm and Ivy Core
Can any of the company-specific risk be diversified away by investing in both Kinetics Paradigm and Ivy Core 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 Ivy Core 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 Ivy E Equity, you can compare the effects of market volatilities on Kinetics Paradigm and Ivy Core 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 Ivy Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Paradigm and Ivy Core.
Diversification Opportunities for Kinetics Paradigm and Ivy Core
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetics and Ivy is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Ivy E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy E Equity 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 Ivy Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy E Equity has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Ivy Core go up and down completely randomly.
Pair Corralation between Kinetics Paradigm and Ivy Core
Assuming the 90 days horizon Kinetics Paradigm Fund is expected to generate 3.46 times more return on investment than Ivy Core. However, Kinetics Paradigm is 3.46 times more volatile than Ivy E Equity. It trades about 0.51 of its potential returns per unit of risk. Ivy E Equity is currently generating about 0.15 per unit of risk. If you would invest 13,261 in Kinetics Paradigm Fund on August 28, 2024 and sell it today you would earn a total of 5,070 from holding Kinetics Paradigm Fund or generate 38.23% 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. Ivy E Equity
Performance |
| Timeline |
| Kinetics Paradigm |
| Ivy E Equity |
Kinetics Paradigm and Ivy Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Paradigm and Ivy Core
The main advantage of trading using opposite Kinetics Paradigm and Ivy Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Paradigm position performs unexpectedly, Ivy Core 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 Ivy Core will offset losses from the drop in Ivy Core'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 |
| Ivy Core vs. Ivy Large Cap | Ivy Core vs. Ivy Small Cap | Ivy Core vs. Ivy High Income | Ivy Core vs. Ivy Apollo Multi Asset |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |