Correlation Between Kinetics Global and Nuveen Mid
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Nuveen Mid 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 Mid 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 Mid Cap, you can compare the effects of market volatilities on Kinetics Global and Nuveen Mid 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 Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Nuveen Mid.
Diversification Opportunities for Kinetics Global and Nuveen Mid
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Nuveen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Nuveen Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mid Cap 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 Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mid Cap has no effect on the direction of Kinetics Global i.e., Kinetics Global and Nuveen Mid go up and down completely randomly.
Pair Corralation between Kinetics Global and Nuveen Mid
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 1.69 times more return on investment than Nuveen Mid. However, Kinetics Global is 1.69 times more volatile than Nuveen Mid Cap. It trades about 0.5 of its potential returns per unit of risk. Nuveen Mid Cap is currently generating about 0.45 per unit of risk. If you would invest 1,477 in Kinetics Global Fund on September 2, 2024 and sell it today you would earn a total of 332.00 from holding Kinetics Global Fund or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Nuveen Mid Cap
Performance |
| Timeline |
| Kinetics Global |
| Nuveen Mid Cap |
Kinetics Global and Nuveen Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Nuveen Mid
The main advantage of trading using opposite Kinetics Global and Nuveen Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Nuveen Mid 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 Mid will offset losses from the drop in Nuveen Mid'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 |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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