Correlation Between Kinetik Holdings and Sun Life
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and Sun Life 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 Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and Sun Life Financial, you can compare the effects of market volatilities on Kinetik Holdings and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Sun Life.
Diversification Opportunities for Kinetik Holdings and Sun Life
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kinetik and Sun is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Sun Life go up and down completely randomly.
Pair Corralation between Kinetik Holdings and Sun Life
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 1.69 times more return on investment than Sun Life. However, Kinetik Holdings is 1.69 times more volatile than Sun Life Financial. It trades about 0.1 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.07 per unit of risk. If you would invest 2,809 in Kinetik Holdings on August 26, 2024 and sell it today you would earn a total of 3,356 from holding Kinetik Holdings or generate 119.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetik Holdings vs. Sun Life Financial
Performance |
| Timeline |
| Kinetik Holdings |
| Sun Life Financial |
Kinetik Holdings and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and Sun Life
The main advantage of trading using opposite Kinetik Holdings and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life'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 |
| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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