Correlation Between Kinetik Holdings and Viking Holdings
Can any of the company-specific risk be diversified away by investing in both Kinetik Holdings and Viking Holdings 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 Viking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetik Holdings and Viking Holdings, you can compare the effects of market volatilities on Kinetik Holdings and Viking Holdings 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 Viking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Viking Holdings.
Diversification Opportunities for Kinetik Holdings and Viking Holdings
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetik and Viking is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Viking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Holdings 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 Viking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Holdings has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Viking Holdings go up and down completely randomly.
Pair Corralation between Kinetik Holdings and Viking Holdings
Given the investment horizon of 90 days Kinetik Holdings is expected to generate 0.93 times more return on investment than Viking Holdings. However, Kinetik Holdings is 1.07 times less risky than Viking Holdings. It trades about 0.1 of its potential returns per unit of risk. Viking Holdings is currently generating about -0.07 per unit of risk. If you would invest 5,627 in Kinetik Holdings on October 9, 2024 and sell it today you would earn a total of 223.00 from holding Kinetik Holdings or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetik Holdings vs. Viking Holdings
Performance |
| Timeline |
| Kinetik Holdings |
| Viking Holdings |
Kinetik Holdings and Viking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetik Holdings and Viking Holdings
The main advantage of trading using opposite Kinetik Holdings and Viking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Viking Holdings 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 Viking Holdings will offset losses from the drop in Viking Holdings' long position.| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
| Viking Holdings vs. Galaxy Gaming | Viking Holdings vs. Champion Gaming Group | Viking Holdings vs. SEI Investments | Viking Holdings vs. Fidus Investment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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