Correlation Between Kinetics Paradigm and Jacob Internet

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

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

Diversification Opportunities for Kinetics Paradigm and Jacob Internet

-0.59

Correlation Coefficient

Kinetics Paradigm  Jacob Internet

Excellent diversification

The 3 months correlation between Kinetics and Jacob is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Paradigm Fund and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet and Kinetics Paradigm 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 Paradigm Fund are associated (or correlated) with Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Kinetics Paradigm i.e., Kinetics Paradigm and Jacob Internet go up and down completely randomly.

Pair Corralation between Kinetics Paradigm and Jacob Internet

Assuming the 90 days horizon Kinetics Paradigm is expected to generate 1.21 times less return on investment than Jacob Internet. In addition to that, Kinetics Paradigm is 1.06 times more volatile than Jacob Internet Fund. It trades about 0.06 of its total potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.08 per unit of volatility. If you would invest  399.00  in Jacob Internet Fund on July 2, 2025 and sell it today you would earn a total of  386.00  from holding Jacob Internet Fund or generate 96.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Kinetics Paradigm Fund  vs.  Jacob Internet Fund

Kinetics Paradigm

Risk-Adjusted Performance

Weakest

Over the last 90 days Kinetics Paradigm Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Jacob Internet

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jacob Internet Fund are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Jacob Internet showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinetics Paradigm and Jacob Internet

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

The idea behind Kinetics Paradigm Fund and Jacob Internet 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.