Correlation Between Fly E and Kinetik Holdings
Can any of the company-specific risk be diversified away by investing in both Fly E 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 Fly E and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fly E Group, Common and Kinetik Holdings, you can compare the effects of market volatilities on Fly E 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 Fly E with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fly E and Kinetik Holdings.
Diversification Opportunities for Fly E and Kinetik Holdings
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fly and Kinetik is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fly E Group, Common and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and Fly E 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 Fly E Group, Common 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 Fly E i.e., Fly E and Kinetik Holdings go up and down completely randomly.
Pair Corralation between Fly E and Kinetik Holdings
Given the investment horizon of 90 days Fly E Group, Common is expected to under-perform the Kinetik Holdings. In addition to that, Fly E is 2.15 times more volatile than Kinetik Holdings. It trades about -0.14 of its total potential returns per unit of risk. Kinetik Holdings is currently generating about 0.13 per unit of volatility. If you would invest 5,893 in Kinetik Holdings on November 9, 2024 and sell it today you would earn a total of 365.00 from holding Kinetik Holdings or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fly E Group, Common vs. Kinetik Holdings
Performance |
| Timeline |
| Fly E Group, |
| Kinetik Holdings |
Fly E and Kinetik Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fly E and Kinetik Holdings
The main advantage of trading using opposite Fly E and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fly E 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.| Fly E vs. Grupo Simec SAB | Fly E vs. RadNet Inc | Fly E vs. Highway Holdings Limited | Fly E vs. Alto Ingredients |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |