Correlation Between Kinetik Holdings and National Vision
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and National Vision 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 National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and National Vision Holdings, you can compare the effects of market volatilities on Kinetik Holdings and National Vision 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 National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and National Vision.
Diversification Opportunities for Kinetik Holdings and National Vision
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetik and National is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings 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 National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and National Vision go up and down completely randomly.
Pair Corralation between Kinetik Holdings and National Vision
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 0.57 times more return on investment than National Vision. However, Kinetik Holdings is 1.76 times less risky than National Vision. It trades about 0.19 of its potential returns per unit of risk. National Vision Holdings is currently generating about -0.04 per unit of risk. If you would invest 3,871 in Kinetik Holdings on September 1, 2024 and sell it today you would earn a total of 2,031 from holding Kinetik Holdings or generate 52.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetik Holdings vs. National Vision Holdings
Performance |
| Timeline |
| Kinetik Holdings |
| National Vision Holdings |
Kinetik Holdings and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and National Vision
The main advantage of trading using opposite Kinetik Holdings and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision'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 |
| National Vision vs. Alcon AG | National Vision vs. The Cooper Companies, | National Vision vs. AngioDynamics | National Vision vs. AptarGroup |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |