Correlation Between Pace International and Kinetics Global

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

By analyzing existing cross correlation between Pace International Emerging and Kinetics Global Fund, you can compare the effects of market volatilities on Pace International and Kinetics Global 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 Pace International with a short position of Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Kinetics Global.

Diversification Opportunities for Pace International and Kinetics Global

0.09

Correlation Coefficient

Pace International  Kinetics Global

Significant diversification

The 3 months correlation between Pace and Kinetics is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global and Pace International 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 Pace International Emerging are associated (or correlated) with Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Pace International i.e., Pace International and Kinetics Global go up and down completely randomly.

Pair Corralation between Pace International and Kinetics Global

Assuming the 90 days horizon Pace International is expected to generate 1.54 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Pace International Emerging is 1.41 times less risky than Kinetics Global. It trades about 0.09 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,163  in Kinetics Global Fund on May 16, 2025 and sell it today you would earn a total of  563.00  from holding Kinetics Global Fund or generate 48.41% return on investment over 90 days.

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

Pace International Emerging  vs.  Kinetics Global Fund

Pace International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pace International Emerging are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Pace International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Kinetics Global

Risk-Adjusted Performance

Weakest

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

Pair Trading with Pace International and Kinetics Global

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

The idea behind Pace International Emerging and Kinetics Global Fund 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.