Correlation Between NYSE Composite and KINDER
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By analyzing existing cross correlation between NYSE Composite and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on NYSE Composite and KINDER 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 NYSE Composite with a short position of KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and KINDER.
Diversification Opportunities for NYSE Composite and KINDER
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and KINDER is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY and NYSE Composite 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 NYSE Composite are associated (or correlated) with KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN ENERGY has no effect on the direction of NYSE Composite i.e., NYSE Composite and KINDER go up and down completely randomly.
Pair Corralation between NYSE Composite and KINDER
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.82 times more return on investment than KINDER. However, NYSE Composite is 1.23 times less risky than KINDER. It trades about 0.17 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about -0.03 per unit of risk. If you would invest 1,901,742 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 125,462 from holding NYSE Composite or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
NYSE Composite vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
NYSE Composite and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
KINDER MORGAN ENERGY
Pair trading matchups for KINDER
Pair Trading with NYSE Composite and KINDER
The main advantage of trading using opposite NYSE Composite and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
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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