Correlation Between Kinetik Holdings and Nubia Brand

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

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

Diversification Opportunities for Kinetik Holdings and Nubia Brand

-0.48

Correlation Coefficient

Kinetik Holdings  Nubia Brand

Very good diversification

The 3 months correlation between Kinetik and Nubia is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Nubia Brand International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubia Brand International and Kinetik Holdings 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 Kinetik Holdings are associated (or correlated) with Nubia Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubia Brand International has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Nubia Brand go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Nubia Brand

If you would invest  4,551  in Kinetik Holdings on September 19, 2024 and sell it today you would earn a total of  913.00  from holding Kinetik Holdings or generate 20.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Kinetik Holdings  vs.  Nubia Brand International

Kinetik Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Kinetik Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Nubia Brand International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nubia Brand International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Nubia Brand is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kinetik Holdings and Nubia Brand

The main advantage of trading using opposite Kinetik Holdings and Nubia Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetik Holdings position performs unexpectedly, Nubia Brand 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 Nubia Brand will offset losses from the drop in Nubia Brand's long position.

The idea behind Kinetik Holdings and Nubia Brand International 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.