Correlation Between 00108WAF7 and KINDER
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By analyzing existing cross correlation between AEP TEX INC and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and KINDER.
Diversification Opportunities for 00108WAF7 and KINDER
Poor diversification
The 3 months correlation between 00108WAF7 and KINDER is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC 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 00108WAF7 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 AEP TEX INC 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 00108WAF7 i.e., 00108WAF7 and KINDER go up and down completely randomly.
Pair Corralation between 00108WAF7 and KINDER
Assuming the 90 days trading horizon 00108WAF7 is expected to generate 1.48 times less return on investment than KINDER. But when comparing it to its historical volatility, AEP TEX INC is 1.6 times less risky than KINDER. It trades about 0.27 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 9,141 in KINDER MORGAN ENERGY on November 9, 2024 and sell it today you would earn a total of 711.00 from holding KINDER MORGAN ENERGY or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.95% |
| Values | Daily Returns |
AEP TEX INC vs. KINDER MORGAN ENERGY
Performance |
| Timeline |
| AEP TEX INC |
| KINDER MORGAN ENERGY |
00108WAF7 and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and KINDER
The main advantage of trading using opposite 00108WAF7 and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. BioNTech SE | 00108WAF7 vs. Molecular Partners AG | 00108WAF7 vs. Nuvalent | 00108WAF7 vs. Regeneron Pharmaceuticals |
| KINDER vs. BranchOut Food Common | KINDER vs. Rocky Brands | KINDER vs. Franklin Wireless Corp | KINDER vs. Natural Alternatives International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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