Correlation Between Pembina Pipeline and KENTIMA HOLDING
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and KENTIMA HOLDING 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 Pembina Pipeline and KENTIMA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and KENTIMA HOLDING AB, you can compare the effects of market volatilities on Pembina Pipeline and KENTIMA HOLDING 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 Pembina Pipeline with a short position of KENTIMA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and KENTIMA HOLDING.
Diversification Opportunities for Pembina Pipeline and KENTIMA HOLDING
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pembina and KENTIMA is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and KENTIMA HOLDING AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENTIMA HOLDING AB and Pembina Pipeline 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 Pembina Pipeline Corp are associated (or correlated) with KENTIMA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENTIMA HOLDING AB has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and KENTIMA HOLDING go up and down completely randomly.
Pair Corralation between Pembina Pipeline and KENTIMA HOLDING
Assuming the 90 days horizon Pembina Pipeline is expected to generate 2.91 times less return on investment than KENTIMA HOLDING. But when comparing it to its historical volatility, Pembina Pipeline Corp is 7.83 times less risky than KENTIMA HOLDING. It trades about 0.12 of its potential returns per unit of risk. KENTIMA HOLDING AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14.00 in KENTIMA HOLDING AB on September 4, 2024 and sell it today you would earn a total of 1.00 from holding KENTIMA HOLDING AB or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. KENTIMA HOLDING AB
Performance |
| Timeline |
| Pembina Pipeline Corp |
| KENTIMA HOLDING AB |
Pembina Pipeline and KENTIMA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and KENTIMA HOLDING
The main advantage of trading using opposite Pembina Pipeline and KENTIMA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, KENTIMA HOLDING 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 KENTIMA HOLDING will offset losses from the drop in KENTIMA HOLDING's long position.| Pembina Pipeline vs. Taiwan Semiconductor Manufacturing | Pembina Pipeline vs. TAL Education Group | Pembina Pipeline vs. Elmos Semiconductor SE | Pembina Pipeline vs. Laureate Education |
| KENTIMA HOLDING vs. International Game Technology | KENTIMA HOLDING vs. EMBARK EDUCATION LTD | KENTIMA HOLDING vs. STRAYER EDUCATION | KENTIMA HOLDING vs. GameStop 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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