Correlation Between FDG Electric and Kinetik Holdings
Can any of the company-specific risk be diversified away by investing in both FDG Electric and Kinetik Holdings 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 FDG Electric and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Kinetik Holdings, you can compare the effects of market volatilities on FDG Electric and Kinetik Holdings 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 FDG Electric with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Kinetik Holdings.
Diversification Opportunities for FDG Electric and Kinetik Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Kinetik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and FDG Electric 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 FDG Electric Vehicles are associated (or correlated) with Kinetik Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetik Holdings has no effect on the direction of FDG Electric i.e., FDG Electric and Kinetik Holdings go up and down completely randomly.
Pair Corralation between FDG Electric and Kinetik Holdings
If you would invest 4,867 in Kinetik Holdings on September 1, 2024 and sell it today you would earn a total of 1,035 from holding Kinetik Holdings or generate 21.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Kinetik Holdings
Performance |
| Timeline |
| FDG Electric Vehicles |
| Kinetik Holdings |
FDG Electric and Kinetik Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Kinetik Holdings
The main advantage of trading using opposite FDG Electric and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric position performs unexpectedly, Kinetik Holdings 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 Kinetik Holdings will offset losses from the drop in Kinetik Holdings' long position.| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Quantumscape Corp | FDG Electric vs. Lear Corporation |
| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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