Correlation Between Horizon Kinetics and Simplify Managed

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

By analyzing existing cross correlation between Horizon Kinetics Inflation and Simplify Managed Futures, you can compare the effects of market volatilities on Horizon Kinetics and Simplify Managed 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 Horizon Kinetics with a short position of Simplify Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Simplify Managed.

Diversification Opportunities for Horizon Kinetics and Simplify Managed

-0.12

Correlation Coefficient

Horizon Kinetics  Simplify Managed

Good diversification

The 3 months correlation between Horizon and Simplify is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Inflation and Simplify Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Managed Futures and Horizon Kinetics 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 Horizon Kinetics Inflation are associated (or correlated) with Simplify Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Managed Futures has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and Simplify Managed go up and down completely randomly.

Pair Corralation between Horizon Kinetics and Simplify Managed

Given the investment horizon of 90 days Horizon Kinetics Inflation is expected to under-perform the Simplify Managed. But the etf apears to be less risky and, when comparing its historical volatility, Horizon Kinetics Inflation is 1.13 times less risky than Simplify Managed. The etf trades about 0.0 of its potential returns per unit of risk. The Simplify Managed Futures is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,712  in Simplify Managed Futures on May 3, 2025 and sell it today you would earn a total of  35.00  from holding Simplify Managed Futures or generate 1.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Horizon Kinetics Inflation  vs.  Simplify Managed Futures

Horizon Kinetics Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Horizon Kinetics Inflation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Horizon Kinetics is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Simplify Managed Futures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Managed Futures are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Simplify Managed is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Horizon Kinetics and Simplify Managed

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

The idea behind Horizon Kinetics Inflation and Simplify Managed Futures 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.