Correlation Between Fulcrum Therapeutics and KINDER

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

By analyzing existing cross correlation between Fulcrum Therapeutics and KINDER MORGAN FIN, you can compare the effects of market volatilities on Fulcrum Therapeutics 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 Fulcrum Therapeutics with a short position of KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Therapeutics and KINDER.

Diversification Opportunities for Fulcrum Therapeutics and KINDER

-0.03

Correlation Coefficient

Fulcrum Therapeutics  KINDER

Good diversification

The 3 months correlation between Fulcrum and KINDER is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Therapeutics and KINDER MORGAN FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN FIN and Fulcrum Therapeutics 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 Fulcrum Therapeutics 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 FIN has no effect on the direction of Fulcrum Therapeutics i.e., Fulcrum Therapeutics and KINDER go up and down completely randomly.

Pair Corralation between Fulcrum Therapeutics and KINDER

Given the investment horizon of 90 days Fulcrum Therapeutics is expected to under-perform the KINDER. In addition to that, Fulcrum Therapeutics is 1.31 times more volatile than KINDER MORGAN FIN. It trades about -0.18 of its total potential returns per unit of risk. KINDER MORGAN FIN is currently generating about 0.07 per unit of volatility. If you would invest  10,378  in KINDER MORGAN FIN on December 25, 2024 and sell it today you would earn a total of  518.00  from holding KINDER MORGAN FIN or generate 4.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.54%
Values	Daily Returns

Fulcrum Therapeutics  vs.  KINDER MORGAN FIN

Fulcrum Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fulcrum Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

KINDER MORGAN FIN

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KINDER MORGAN FIN are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, KINDER may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Fulcrum Therapeutics and KINDER

The main advantage of trading using opposite Fulcrum Therapeutics and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Therapeutics 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.

The idea behind Fulcrum Therapeutics and KINDER MORGAN FIN 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.