Correlation Between Kinetics Global and Nuveen Kansas
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Nuveen Kansas 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 Nuveen Kansas 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 Nuveen Kansas Municipal, you can compare the effects of market volatilities on Kinetics Global and Nuveen Kansas 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 Nuveen Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Nuveen Kansas.
Diversification Opportunities for Kinetics Global and Nuveen Kansas
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Nuveen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Nuveen Kansas Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Kansas Municipal 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 Nuveen Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Kansas Municipal has no effect on the direction of Kinetics Global i.e., Kinetics Global and Nuveen Kansas go up and down completely randomly.
Pair Corralation between Kinetics Global and Nuveen Kansas
Assuming the 90 days horizon Kinetics Global Fund is expected to under-perform the Nuveen Kansas. In addition to that, Kinetics Global is 5.03 times more volatile than Nuveen Kansas Municipal. It trades about -0.09 of its total potential returns per unit of risk. Nuveen Kansas Municipal is currently generating about 0.19 per unit of volatility. If you would invest 990.00 in Nuveen Kansas Municipal on November 28, 2024 and sell it today you would earn a total of 8.00 from holding Nuveen Kansas Municipal or generate 0.81% 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. Nuveen Kansas Municipal
Performance |
| Timeline |
| Kinetics Global |
| Nuveen Kansas Municipal |
Kinetics Global and Nuveen Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Nuveen Kansas
The main advantage of trading using opposite Kinetics Global and Nuveen Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Nuveen Kansas 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 Nuveen Kansas will offset losses from the drop in Nuveen Kansas' 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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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