Correlation Between Infinity Pharmaceuticals and Kinetik Holdings

Can any of the company-specific risk be diversified away by investing in both Infinity Pharmaceuticals 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 Infinity Pharmaceuticals and Kinetik Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infinity Pharmaceuticals and Kinetik Holdings, you can compare the effects of market volatilities on Infinity Pharmaceuticals 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 Infinity Pharmaceuticals with a short position of Kinetik Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Pharmaceuticals and Kinetik Holdings.

Diversification Opportunities for Infinity Pharmaceuticals and Kinetik Holdings

0.0

Correlation Coefficient

Infinity Pharmaceuticals  Kinetik Holdings

Pay attention - limited upside

The 3 months correlation between Infinity and Kinetik is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Pharmaceuticals and Kinetik Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetik Holdings and Infinity Pharmaceuticals 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 Infinity Pharmaceuticals 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 Infinity Pharmaceuticals i.e., Infinity Pharmaceuticals and Kinetik Holdings go up and down completely randomly.

Pair Corralation between Infinity Pharmaceuticals and Kinetik Holdings

If you would invest  4,285  in Kinetik Holdings on September 12, 2024 and sell it today you would earn a total of  1,260  from holding Kinetik Holdings or generate 29.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Infinity Pharmaceuticals  vs.  Kinetik Holdings

Infinity Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infinity Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Infinity Pharmaceuticals is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Kinetik Holdings

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 16 (%) 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.

Pair Trading with Infinity Pharmaceuticals and Kinetik Holdings

The main advantage of trading using opposite Infinity Pharmaceuticals and Kinetik Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Pharmaceuticals 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 Infinity Pharmaceuticals 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.