Correlation Between Kinetics Spin and Acclivity Small

Can any of the company-specific risk be diversified away by investing in both Kinetics Spin and Acclivity 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 Spin and Acclivity Small into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kinetics Spin Off And and Acclivity Small Cap, you can compare the effects of market volatilities on Kinetics Spin and Acclivity 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 Spin with a short position of Acclivity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Spin and Acclivity Small.

Diversification Opportunities for Kinetics Spin and Acclivity Small

0.89

Correlation Coefficient

Kinetics Spin  Acclivity Small

Very poor diversification

The 3 months correlation between Kinetics and Acclivity is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Spin Off And and Acclivity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acclivity Small Cap and Kinetics Spin 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 Spin Off And are associated (or correlated) with Acclivity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acclivity Small Cap has no effect on the direction of Kinetics Spin i.e., Kinetics Spin and Acclivity Small go up and down completely randomly.

Pair Corralation between Kinetics Spin and Acclivity Small

Assuming the 90 days horizon Kinetics Spin Off And is expected to generate 1.76 times more return on investment than Acclivity Small. However, Kinetics Spin is 1.76 times more volatile than Acclivity Small Cap. It trades about 0.24 of its potential returns per unit of risk. Acclivity Small Cap is currently generating about 0.07 per unit of risk. If you would invest  2,756  in Kinetics Spin Off And on September 12, 2024 and sell it today you would earn a total of  1,294  from holding Kinetics Spin Off And or generate 46.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Kinetics Spin Off And  vs.  Acclivity Small Cap

Kinetics Spin Off

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Spin Off And are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Kinetics Spin showed solid returns over the last few months and may actually be approaching a breakup point.

Acclivity Small Cap

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Acclivity Small Cap are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Acclivity Small may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Kinetics Spin and Acclivity Small

The main advantage of trading using opposite Kinetics Spin and Acclivity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Spin position performs unexpectedly, Acclivity 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 Acclivity Small will offset losses from the drop in Acclivity Small's long position.

The idea behind Kinetics Spin Off And and Acclivity Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.