Correlation Between Kinetics Global and Touchstone Small
Can any of the company-specific risk be diversified away by investing in both Kinetics Global and Touchstone Small 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 Touchstone Small 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 Touchstone Small Cap, you can compare the effects of market volatilities on Kinetics Global and Touchstone Small 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 Touchstone Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Touchstone Small.
Diversification Opportunities for Kinetics Global and Touchstone Small
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and Touchstone is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund and Touchstone Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Small 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 Touchstone Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Cap has no effect on the direction of Kinetics Global i.e., Kinetics Global and Touchstone Small go up and down completely randomly.
Pair Corralation between Kinetics Global and Touchstone Small
Assuming the 90 days horizon Kinetics Global Fund is expected to generate 1.39 times more return on investment than Touchstone Small. However, Kinetics Global is 1.39 times more volatile than Touchstone Small Cap. It trades about 0.18 of its potential returns per unit of risk. Touchstone Small Cap is currently generating about 0.11 per unit of risk. If you would invest 887.00 in Kinetics Global Fund on September 1, 2024 and sell it today you would earn a total of 922.00 from holding Kinetics Global Fund or generate 103.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Kinetics Global Fund vs. Touchstone Small Cap
Performance |
| Timeline |
| Kinetics Global |
| Touchstone Small Cap |
Kinetics Global and Touchstone Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Touchstone Small
The main advantage of trading using opposite Kinetics Global and Touchstone Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global position performs unexpectedly, Touchstone Small 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 Touchstone Small will offset losses from the drop in Touchstone Small'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 |
| Touchstone Small vs. Cutler Equity | Touchstone Small vs. Scharf Fund Retail | Touchstone Small vs. Huber Capital Equity | Touchstone Small vs. Icon Equity Income |
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.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world |