Correlation Between Kinetics Small and Vy(r) American

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

By analyzing existing cross correlation between Kinetics Small Cap and Vy American Century, you can compare the effects of market volatilities on Kinetics Small and Vy(r) American 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 Small with a short position of Vy(r) American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Small and Vy(r) American.

Diversification Opportunities for Kinetics Small and Vy(r) American

-0.13

Correlation Coefficient

Kinetics Small  Vy(r) American

Good diversification

The 3 months correlation between Kinetics and Vy(r) is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Small Cap and Vy American Century in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy American Century and Kinetics Small 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 Small Cap are associated (or correlated) with Vy(r) American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy American Century has no effect on the direction of Kinetics Small i.e., Kinetics Small and Vy(r) American go up and down completely randomly.

Pair Corralation between Kinetics Small and Vy(r) American

Assuming the 90 days horizon Kinetics Small Cap is expected to under-perform the Vy(r) American. In addition to that, Kinetics Small is 1.72 times more volatile than Vy American Century. It trades about -0.05 of its total potential returns per unit of risk. Vy American Century is currently generating about 0.04 per unit of volatility. If you would invest  979.00  in Vy American Century on September 15, 2025 and sell it today you would earn a total of  18.00  from holding Vy American Century or generate 1.84% return on investment over 90 days.

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

Kinetics Small Cap  vs.  Vy American Century

Kinetics Small Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days Kinetics Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Kinetics Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vy American Century

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vy American Century are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vy(r) American is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kinetics Small and Vy(r) American

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

The idea behind Kinetics Small Cap and Vy American Century 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.