Correlation Between ZenaTech and Kinetik Holdings

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Can any of the company-specific risk be diversified away by investing in both ZenaTech 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 ZenaTech and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZenaTech and Kinetik Holdings, you can compare the effects of market volatilities on ZenaTech 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 ZenaTech with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZenaTech and Kinetik Holdings.

Diversification Opportunities for ZenaTech and Kinetik Holdings

-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between ZenaTech and Kinetik is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ZenaTech and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and ZenaTech 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 ZenaTech 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 ZenaTech i.e., ZenaTech and Kinetik Holdings go up and down completely randomly.

Pair Corralation between ZenaTech and Kinetik Holdings

Given the investment horizon of 90 days ZenaTech is expected to generate 29.81 times more return on investment than Kinetik Holdings. However, ZenaTech is 29.81 times more volatile than Kinetik Holdings. It trades about 0.21 of its potential returns per unit of risk. Kinetik Holdings is currently generating about 0.02 per unit of risk. If you would invest  190.00  in ZenaTech on September 13, 2024 and sell it today you would earn a total of  379.00  from holding ZenaTech or generate 199.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

ZenaTech  vs.  Kinetik Holdings

 Performance 
       Timeline  
ZenaTech 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in ZenaTech are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, ZenaTech sustained solid returns over the last few months and may actually be approaching a breakup point.
Kinetik Holdings 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Kinetik Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

ZenaTech and Kinetik Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ZenaTech and Kinetik Holdings

The main advantage of trading using opposite ZenaTech and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZenaTech 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.
The idea behind ZenaTech and Kinetik Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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