Correlation Between Kinetik Holdings and NeueHealth
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and NeueHealth 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 NeueHealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and NeueHealth, you can compare the effects of market volatilities on Kinetik Holdings and NeueHealth 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 NeueHealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and NeueHealth.
Diversification Opportunities for Kinetik Holdings and NeueHealth
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetik and NeueHealth is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and NeueHealth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeueHealth 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 NeueHealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeueHealth has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and NeueHealth go up and down completely randomly.
Pair Corralation between Kinetik Holdings and NeueHealth
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 0.61 times more return on investment than NeueHealth. However, Kinetik Holdings is 1.65 times less risky than NeueHealth. It trades about 0.27 of its potential returns per unit of risk. NeueHealth is currently generating about -0.02 per unit of risk. If you would invest 4,273 in Kinetik Holdings on August 31, 2024 and sell it today you would earn a total of 1,593 from holding Kinetik Holdings or generate 37.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetik Holdings vs. NeueHealth
Performance |
| Timeline |
| Kinetik Holdings |
| NeueHealth |
Kinetik Holdings and NeueHealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and NeueHealth
The main advantage of trading using opposite Kinetik Holdings and NeueHealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, NeueHealth 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 NeueHealth will offset losses from the drop in NeueHealth'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 |
| NeueHealth vs. SunLink Health Systems | NeueHealth vs. 51Talk Online Education | NeueHealth vs. Sea | NeueHealth vs. Saia Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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