Correlation Between Kinetik Holdings and Iberdrola
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and Iberdrola 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 Iberdrola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and Iberdrola SA, you can compare the effects of market volatilities on Kinetik Holdings and Iberdrola 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 Iberdrola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Iberdrola.
Diversification Opportunities for Kinetik Holdings and Iberdrola
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kinetik and Iberdrola is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Iberdrola SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iberdrola SA 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 Iberdrola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iberdrola SA has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Iberdrola go up and down completely randomly.
Pair Corralation between Kinetik Holdings and Iberdrola
If you would invest 2,700 in Kinetik Holdings on September 12, 2024 and sell it today you would earn a total of 2,845 from holding Kinetik Holdings or generate 105.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kinetik Holdings vs. Iberdrola SA
Performance |
| Timeline |
| Kinetik Holdings |
| Iberdrola SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kinetik Holdings and Iberdrola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and Iberdrola
The main advantage of trading using opposite Kinetik Holdings and Iberdrola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Iberdrola 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 Iberdrola will offset losses from the drop in Iberdrola'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 |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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