Correlation Between East Africa and KINDER
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By analyzing existing cross correlation between East Africa Metals and KINDER MORGAN INC, you can compare the effects of market volatilities on East Africa and KINDER 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 East Africa with a short position of KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and KINDER.
Diversification Opportunities for East Africa and KINDER
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between East and KINDER is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC and East Africa 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 East Africa Metals are associated (or correlated) with KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of East Africa i.e., East Africa and KINDER go up and down completely randomly.
Pair Corralation between East Africa and KINDER
If you would invest 9,497 in KINDER MORGAN INC on September 1, 2024 and sell it today you would earn a total of 13.00 from holding KINDER MORGAN INC or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
East Africa Metals vs. KINDER MORGAN INC
Performance |
| Timeline |
| East Africa Metals |
| KINDER MORGAN INC |
East Africa and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Africa and KINDER
The main advantage of trading using opposite East Africa and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| East Africa vs. Pasinex Resources Limited | East Africa vs. Commander Resources | East Africa vs. Forsys Metals Corp | East Africa vs. American CuMo Mining |
| KINDER vs. Iridium Communications | KINDER vs. East Africa Metals | KINDER vs. Barrick Gold Corp | KINDER vs. Uranium Energy Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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