Correlation Between Kinetik Holdings and Hitachi Metals
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and Hitachi Metals 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 Hitachi Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and Hitachi Metals, you can compare the effects of market volatilities on Kinetik Holdings and Hitachi Metals 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 Hitachi Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Hitachi Metals.
Diversification Opportunities for Kinetik Holdings and Hitachi Metals
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetik and Hitachi is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Hitachi Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitachi Metals 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 Hitachi Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitachi Metals has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Hitachi Metals go up and down completely randomly.
Pair Corralation between Kinetik Holdings and Hitachi Metals
If you would invest 3,181 in Kinetik Holdings on September 4, 2024 and sell it today you would earn a total of 2,537 from holding Kinetik Holdings or generate 79.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Kinetik Holdings vs. Hitachi Metals
Performance |
| Timeline |
| Kinetik Holdings |
| Hitachi Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetik Holdings and Hitachi Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and Hitachi Metals
The main advantage of trading using opposite Kinetik Holdings and Hitachi Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Hitachi Metals 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 Hitachi Metals will offset losses from the drop in Hitachi Metals' long position.| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
| Hitachi Metals vs. Data3 Limited | Hitachi Metals vs. Seadrill Limited | Hitachi Metals vs. AKITA Drilling | Hitachi Metals vs. Infosys Ltd ADR |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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