Correlation Between Kinetik Holdings and Brooge Energy

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

By analyzing existing cross correlation between Kinetik Holdings and Brooge Energy Limited, you can compare the effects of market volatilities on Kinetik Holdings and Brooge Energy 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 Brooge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetik Holdings and Brooge Energy.

Diversification Opportunities for Kinetik Holdings and Brooge Energy

0.0

Correlation Coefficient

Kinetik Holdings  Brooge Energy

Pay attention - limited upside

The 3 months correlation between Kinetik and Brooge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Brooge Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brooge Energy Limited 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 Brooge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brooge Energy Limited has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Brooge Energy go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Brooge Energy

If you would invest (100.00) in Brooge Energy Limited on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Brooge Energy Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kinetik Holdings  vs.  Brooge Energy Limited

Kinetik Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kinetik Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Brooge Energy Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brooge Energy Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Brooge Energy is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kinetik Holdings and Brooge Energy

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

The idea behind Kinetik Holdings and Brooge Energy Limited 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.