Correlation Between Horizon Kinetics and EA Series
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics and EA Series 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 EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics Medical and EA Series Trust, you can compare the effects of market volatilities on Horizon Kinetics and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and EA Series.
Diversification Opportunities for Horizon Kinetics and EA Series
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Horizon and DRLL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Medical and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 Medical are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and EA Series go up and down completely randomly.
Pair Corralation between Horizon Kinetics and EA Series
Given the investment horizon of 90 days Horizon Kinetics Medical is expected to generate 0.86 times more return on investment than EA Series. However, Horizon Kinetics Medical is 1.16 times less risky than EA Series. It trades about 0.16 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.12 per unit of risk. If you would invest 2,665 in Horizon Kinetics Medical on June 7, 2025 and sell it today you would earn a total of 255.00 from holding Horizon Kinetics Medical or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics Medical vs. EA Series Trust
Performance |
| Timeline |
| Horizon Kinetics Medical |
| EA Series Trust |
Horizon Kinetics and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and EA Series
The main advantage of trading using opposite Horizon Kinetics and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Horizon Kinetics vs. Genenta Science SpA | Horizon Kinetics vs. Harbor Health Care | Horizon Kinetics vs. Myriad Genetics |
| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
Check out your portfolio center.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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