Correlation Between KINDER and Dow Jones
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By analyzing existing cross correlation between KINDER MORGAN INC and Dow Jones Industrial, you can compare the effects of market volatilities on KINDER and Dow Jones 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 KINDER with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of KINDER and Dow Jones.
Diversification Opportunities for KINDER and Dow Jones
Excellent diversification
The 3 months correlation between KINDER and Dow is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding KINDER MORGAN INC and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and KINDER 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 KINDER MORGAN INC are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of KINDER i.e., KINDER and Dow Jones go up and down completely randomly.
Pair Corralation between KINDER and Dow Jones
Assuming the 90 days trading horizon KINDER MORGAN INC is expected to under-perform the Dow Jones. In addition to that, KINDER is 1.28 times more volatile than Dow Jones Industrial. It trades about -0.08 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.18 per unit of volatility. If you would invest 4,109,142 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 376,889 from holding Dow Jones Industrial or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.06% |
| Values | Daily Returns |
KINDER MORGAN INC vs. Dow Jones Industrial
Performance |
| Timeline |
KINDER and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
KINDER MORGAN INC
Pair trading matchups for KINDER
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with KINDER and Dow Jones
The main advantage of trading using opposite KINDER and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KINDER position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| KINDER vs. Pearson PLC ADR | KINDER vs. Doubledown Interactive Co | KINDER vs. Cumberland Pharmaceuticals | KINDER vs. NetEase |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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