Correlation Between Quanergy Systems and Kinetik Holdings
Can any of the company-specific risk be diversified away by investing in both Quanergy Systems and Kinetik 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 Quanergy Systems and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanergy Systems and Kinetik Holdings, you can compare the effects of market volatilities on Quanergy Systems and Kinetik 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 Quanergy Systems with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanergy Systems and Kinetik Holdings.
Diversification Opportunities for Quanergy Systems and Kinetik Holdings
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quanergy and Kinetik is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Quanergy Systems and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and Quanergy Systems 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 Quanergy Systems are associated (or correlated) with Kinetik Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetik Holdings has no effect on the direction of Quanergy Systems i.e., Quanergy Systems and Kinetik Holdings go up and down completely randomly.
Pair Corralation between Quanergy Systems and Kinetik Holdings
If you would invest 5,077 in Kinetik Holdings on August 25, 2024 and sell it today you would earn a total of 1,088 from holding Kinetik Holdings or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Quanergy Systems vs. Kinetik Holdings
Performance |
| Timeline |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kinetik Holdings |
Quanergy Systems and Kinetik Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanergy Systems and Kinetik Holdings
The main advantage of trading using opposite Quanergy Systems and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanergy Systems position performs unexpectedly, Kinetik 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 Kinetik Holdings will offset losses from the drop in Kinetik Holdings' long position.| Quanergy Systems vs. First Ship Lease | Quanergy Systems vs. Custom Truck One | Quanergy Systems vs. Triton International Limited | Quanergy Systems vs. The Gap, |
| Kinetik Holdings vs. Western Midstream Partners | Kinetik Holdings vs. DT Midstream | Kinetik Holdings vs. MPLX LP | Kinetik Holdings vs. Hess Midstream Partners |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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