Correlation Between Kinetics Global and Amg Fq
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Amg Fq 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 Amg Fq 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 Amg Fq Long Short, you can compare the effects of market volatilities on Kinetics Global and Amg Fq 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 Amg Fq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Amg Fq.
Diversification Opportunities for Kinetics Global and Amg Fq
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Amg is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Amg Fq Long Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Fq Long 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 Amg Fq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Fq Long has no effect on the direction of Kinetics Global i.e., Kinetics Global and Amg Fq go up and down completely randomly.
Pair Corralation between Kinetics Global and Amg Fq
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 2.51 times more return on investment than Amg Fq. However, Kinetics Global is 2.51 times more volatile than Amg Fq Long Short. It trades about 0.5 of its potential returns per unit of risk. Amg Fq Long Short is currently generating about 0.4 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. Amg Fq Long Short
Performance |
| Timeline |
| Kinetics Global |
| Amg Fq Long |
Kinetics Global and Amg Fq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Amg Fq
The main advantage of trading using opposite Kinetics Global and Amg Fq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Amg Fq 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 Amg Fq will offset losses from the drop in Amg Fq'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 |
| Amg Fq vs. Jpmorgan Equity Income | Amg Fq vs. Scharf Fund Retail | Amg Fq vs. Cutler Equity | Amg Fq vs. Calamos Global Equity |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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