Correlation Between Kenon Holdings and PACIFIC
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By analyzing existing cross correlation between Kenon Holdings and PACIFIC GAS AND, you can compare the effects of market volatilities on Kenon Holdings and PACIFIC 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 Kenon Holdings with a short position of PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and PACIFIC.
Diversification Opportunities for Kenon Holdings and PACIFIC
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kenon and PACIFIC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND and Kenon Holdings 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 Kenon Holdings are associated (or correlated) with PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Kenon Holdings i.e., Kenon Holdings and PACIFIC go up and down completely randomly.
Pair Corralation between Kenon Holdings and PACIFIC
Considering the 90-day investment horizon Kenon Holdings is expected to generate 25.51 times less return on investment than PACIFIC. But when comparing it to its historical volatility, Kenon Holdings is 26.25 times less risky than PACIFIC. It trades about 0.05 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,844 in PACIFIC GAS AND on September 12, 2024 and sell it today you would earn a total of 891.00 from holding PACIFIC GAS AND or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.35% |
| Values | Daily Returns |
Kenon Holdings vs. PACIFIC GAS AND
Performance |
| Timeline |
| Kenon Holdings |
| PACIFIC GAS AND |
Kenon Holdings and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and PACIFIC
The main advantage of trading using opposite Kenon Holdings and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
| PACIFIC vs. CenterPoint Energy | PACIFIC vs. Kenon Holdings | PACIFIC vs. Perseus Mining Limited | PACIFIC vs. NiSource |
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.
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