Correlation Between Kinetik Holdings and Klépierre
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and Klépierre 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 Klépierre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and Klpierre SA, you can compare the effects of market volatilities on Kinetik Holdings and Klépierre 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 Klépierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Klépierre.
Diversification Opportunities for Kinetik Holdings and Klépierre
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kinetik and Klépierre is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre 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 Klépierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Klépierre go up and down completely randomly.
Pair Corralation between Kinetik Holdings and Klépierre
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 1.19 times less return on investment than Klépierre. But when comparing it to its historical volatility, Kinetik Holdings is 3.14 times less risky than Klépierre. It trades about 0.11 of its potential returns per unit of risk. Klpierre SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,114 in Klpierre SA on November 4, 2024 and sell it today you would earn a total of 848.00 from holding Klpierre SA or generate 40.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.66% |
| Values | Daily Returns |
Kinetik Holdings vs. Klpierre SA
Performance |
| Timeline |
| Kinetik Holdings |
| Klpierre SA |
Kinetik Holdings and Klépierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and Klépierre
The main advantage of trading using opposite Kinetik Holdings and Klépierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Klépierre 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 Klépierre will offset losses from the drop in Klépierre'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 |
| Klépierre vs. Smart REIT | Klépierre vs. Riocan REIT | Klépierre vs. Plaza Retail REIT | Klépierre vs. Choice Properties Real |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| 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 | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |