Correlation Between Kinetik Holdings and CannaGlobal Acquisition
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and CannaGlobal Acquisition 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 Kinetik Holdings and CannaGlobal Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and CannaGlobal Acquisition Corp, you can compare the effects of market volatilities on Kinetik Holdings and CannaGlobal Acquisition 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 Kinetik Holdings with a short position of CannaGlobal Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and CannaGlobal Acquisition.
Diversification Opportunities for Kinetik Holdings and CannaGlobal Acquisition
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetik and CannaGlobal is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and CannaGlobal Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannaGlobal Acquisition and Kinetik 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 Kinetik Holdings are associated (or correlated) with CannaGlobal Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannaGlobal Acquisition has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and CannaGlobal Acquisition go up and down completely randomly.
Pair Corralation between Kinetik Holdings and CannaGlobal Acquisition
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 3.69 times more return on investment than CannaGlobal Acquisition. However, Kinetik Holdings is 3.69 times more volatile than CannaGlobal Acquisition Corp. It trades about 0.13 of its potential returns per unit of risk. CannaGlobal Acquisition Corp is currently generating about 0.02 per unit of risk. If you would invest 2,644 in Kinetik Holdings on August 30, 2024 and sell it today you would earn a total of 3,222 from holding Kinetik Holdings or generate 121.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.13% |
| Values | Daily Returns |
Kinetik Holdings vs. CannaGlobal Acquisition Corp
Performance |
| Timeline |
| Kinetik Holdings |
| CannaGlobal Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetik Holdings and CannaGlobal Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and CannaGlobal Acquisition
The main advantage of trading using opposite Kinetik Holdings and CannaGlobal Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, CannaGlobal Acquisition 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 CannaGlobal Acquisition will offset losses from the drop in CannaGlobal Acquisition's long position.| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
| CannaGlobal Acquisition vs. National CineMedia | CannaGlobal Acquisition vs. Valneva SE ADR | CannaGlobal Acquisition vs. Nuvalent | CannaGlobal Acquisition vs. Amkor Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |