Correlation Between EnLink Midstream and Kinder Morgan
Can any of the company-specific risk be diversified away by investing in both EnLink Midstream and Kinder Morgan 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 EnLink Midstream and Kinder Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EnLink Midstream LLC and Kinder Morgan, you can compare the effects of market volatilities on EnLink Midstream and Kinder Morgan 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 EnLink Midstream with a short position of Kinder Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnLink Midstream and Kinder Morgan.
Diversification Opportunities for EnLink Midstream and Kinder Morgan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EnLink and Kinder is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding EnLink Midstream LLC and Kinder Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinder Morgan and EnLink Midstream 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 EnLink Midstream LLC are associated (or correlated) with Kinder Morgan. 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 has no effect on the direction of EnLink Midstream i.e., EnLink Midstream and Kinder Morgan go up and down completely randomly.
Pair Corralation between EnLink Midstream and Kinder Morgan
Given the investment horizon of 90 days EnLink Midstream is expected to generate 1.3 times less return on investment than Kinder Morgan. In addition to that, EnLink Midstream is 1.55 times more volatile than Kinder Morgan. It trades about 0.05 of its total potential returns per unit of risk. Kinder Morgan is currently generating about 0.1 per unit of volatility. If you would invest 1,590 in Kinder Morgan on September 5, 2024 and sell it today you would earn a total of 1,152 from holding Kinder Morgan or generate 72.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EnLink Midstream LLC vs. Kinder Morgan
Performance |
| Timeline |
| EnLink Midstream LLC |
| Kinder Morgan |
EnLink Midstream and Kinder Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EnLink Midstream and Kinder Morgan
The main advantage of trading using opposite EnLink Midstream and Kinder Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnLink Midstream position performs unexpectedly, Kinder Morgan 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 Morgan will offset losses from the drop in Kinder Morgan's long position.| EnLink Midstream vs. Plains All American | EnLink Midstream vs. Hess Midstream Partners | EnLink Midstream vs. Western Midstream Partners | EnLink Midstream vs. Plains GP Holdings |
| Kinder Morgan vs. EnLink Midstream LLC | Kinder Morgan vs. Plains GP Holdings | Kinder Morgan vs. Hess Midstream Partners | Kinder Morgan vs. Enterprise Products 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |