Correlation Between Infinity Pharmaceuticals and Kinetik Holdings
Can any of the company-specific risk be diversified away by investing in both Infinity Pharmaceuticals 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 Infinity Pharmaceuticals and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Pharmaceuticals and Kinetik Holdings, you can compare the effects of market volatilities on Infinity Pharmaceuticals 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 Infinity Pharmaceuticals with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Pharmaceuticals and Kinetik Holdings.
Diversification Opportunities for Infinity Pharmaceuticals and Kinetik Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infinity and Kinetik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Pharmaceuticals and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals 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 Infinity Pharmaceuticals i.e., Infinity Pharmaceuticals and Kinetik Holdings go up and down completely randomly.
Pair Corralation between Infinity Pharmaceuticals and Kinetik Holdings
Assuming the 90 days horizon Infinity Pharmaceuticals is expected to generate 35.96 times more return on investment than Kinetik Holdings. However, Infinity Pharmaceuticals is 35.96 times more volatile than Kinetik Holdings. It trades about 0.06 of its potential returns per unit of risk. Kinetik Holdings is currently generating about 0.11 per unit of risk. If you would invest 18.00 in Infinity Pharmaceuticals on September 4, 2024 and sell it today you would lose (17.99) from holding Infinity Pharmaceuticals or give up 99.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Infinity Pharmaceuticals vs. Kinetik Holdings
Performance |
| Timeline |
| Infinity Pharmaceuticals |
| Kinetik Holdings |
Infinity Pharmaceuticals and Kinetik Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Pharmaceuticals and Kinetik Holdings
The main advantage of trading using opposite Infinity Pharmaceuticals and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Pharmaceuticals 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.| Infinity Pharmaceuticals vs. Yum Brands | Infinity Pharmaceuticals vs. Shake Shack | Infinity Pharmaceuticals vs. BJs Restaurants | Infinity Pharmaceuticals vs. Kura Sushi USA |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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