Correlation Between Kinetics Global and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Calvert Global 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 Global and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Global Fund and Calvert Global Energy, you can compare the effects of market volatilities on Kinetics Global and Calvert 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 Global with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Calvert Global.
Diversification Opportunities for Kinetics Global and Calvert Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Calvert is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Kinetics Global 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 Global Fund are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Kinetics Global i.e., Kinetics Global and Calvert Global go up and down completely randomly.
Pair Corralation between Kinetics Global and Calvert Global
Assuming the 90 days horizon Kinetics Global Fund is expected to under-perform the Calvert Global. In addition to that, Kinetics Global is 1.12 times more volatile than Calvert Global Energy. It trades about -0.09 of its total potential returns per unit of risk. Calvert Global Energy is currently generating about 0.06 per unit of volatility. If you would invest 1,049 in Calvert Global Energy on November 28, 2024 and sell it today you would earn a total of 12.00 from holding Calvert Global Energy or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Calvert Global Energy
Performance |
| Timeline |
| Kinetics Global |
| Calvert Global Energy |
Kinetics Global and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Calvert Global
The main advantage of trading using opposite Kinetics Global and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Calvert 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
| Calvert Global vs. Ultra Short Fixed Income | Calvert Global vs. Ambrus Core Bond | Calvert Global vs. The Hartford World | Calvert Global vs. T Rowe Price |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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