Correlation Between Standpoint Multi and Horizon Kinetics

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

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

Diversification Opportunities for Standpoint Multi and Horizon Kinetics

0.23

Correlation Coefficient

Standpoint Multi  Horizon Kinetics

Modest diversification

The 3 months correlation between Standpoint and Horizon is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Standpoint Multi Asset and Horizon Kinetics Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Inf and Standpoint Multi 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 Standpoint Multi Asset are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Inf has no effect on the direction of Standpoint Multi i.e., Standpoint Multi and Horizon Kinetics go up and down completely randomly.

Pair Corralation between Standpoint Multi and Horizon Kinetics

Assuming the 90 days horizon Standpoint Multi Asset is expected to generate 0.93 times more return on investment than Horizon Kinetics. However, Standpoint Multi Asset is 1.08 times less risky than Horizon Kinetics. It trades about -0.02 of its potential returns per unit of risk. Horizon Kinetics Inflation is currently generating about -0.02 per unit of risk. If you would invest  1,305  in Standpoint Multi Asset on May 6, 2025 and sell it today you would lose (10.00) from holding Standpoint Multi Asset or give up 0.77% of portfolio value over 90 days.

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

Standpoint Multi Asset  vs.  Horizon Kinetics Inflation

Standpoint Multi Asset

Risk-Adjusted Performance

Very Weak

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

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.

Pair Trading with Standpoint Multi and Horizon Kinetics

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

The idea behind Standpoint Multi Asset and Horizon Kinetics Inflation 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..