Correlation Between Kinetik Holdings and BAIDU
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By analyzing existing cross correlation between Kinetik Holdings and BAIDU INC 4875, you can compare the effects of market volatilities on Kinetik Holdings and BAIDU 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 BAIDU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and BAIDU.
Diversification Opportunities for Kinetik Holdings and BAIDU
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetik and BAIDU is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and BAIDU INC 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIDU INC 4875 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 BAIDU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIDU INC 4875 has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and BAIDU go up and down completely randomly.
Pair Corralation between Kinetik Holdings and BAIDU
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 9.02 times more return on investment than BAIDU. However, Kinetik Holdings is 9.02 times more volatile than BAIDU INC 4875. It trades about 0.33 of its potential returns per unit of risk. BAIDU INC 4875 is currently generating about -0.22 per unit of risk. If you would invest 4,888 in Kinetik Holdings on August 30, 2024 and sell it today you would earn a total of 978.00 from holding Kinetik Holdings or generate 20.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 26.09% |
| Values | Daily Returns |
Kinetik Holdings vs. BAIDU INC 4875
Performance |
| Timeline |
| Kinetik Holdings |
| BAIDU INC 4875 |
Kinetik Holdings and BAIDU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and BAIDU
The main advantage of trading using opposite Kinetik Holdings and BAIDU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, BAIDU 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 BAIDU will offset losses from the drop in BAIDU's long position.| Kinetik Holdings vs. Plains All American | Kinetik Holdings vs. Genesis Energy LP | Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. Hess Midstream Partners |
| BAIDU vs. Kinetik Holdings | BAIDU vs. Tianjin Capital Environmental | BAIDU vs. Black Hills | BAIDU vs. PGE Corp |
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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