Correlation Between Kinetik Holdings and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and Sellas 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 Sellas 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 Sellas Life Sciences, you can compare the effects of market volatilities on Kinetik Holdings and Sellas 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Sellas Life.
Diversification Opportunities for Kinetik Holdings and Sellas Life
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kinetik and Sellas is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Sellas Life go up and down completely randomly.
Pair Corralation between Kinetik Holdings and Sellas Life
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 0.77 times more return on investment than Sellas Life. However, Kinetik Holdings is 1.3 times less risky than Sellas Life. It trades about 0.37 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about -0.05 per unit of risk. If you would invest 4,867 in Kinetik Holdings on September 1, 2024 and sell it today you would earn a total of 1,035 from holding Kinetik Holdings or generate 21.27% 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. Sellas Life Sciences
Performance |
| Timeline |
| Kinetik Holdings |
| Sellas Life Sciences |
Kinetik Holdings and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and Sellas Life
The main advantage of trading using opposite Kinetik Holdings and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Sellas 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 Sellas Life will offset losses from the drop in Sellas 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 |
| Sellas Life vs. Tff Pharmaceuticals | Sellas Life vs. Eliem Therapeutics | Sellas Life vs. Inhibrx | Sellas Life vs. Enliven Therapeutics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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