Correlation Between Kinetik Holdings and Jayud Global

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

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

Diversification Opportunities for Kinetik Holdings and Jayud Global

0.59

Correlation Coefficient

Kinetik Holdings  Jayud Global

Very weak diversification

The 3 months correlation between Kinetik and Jayud is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Jayud Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jayud Global Logistics 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 Jayud Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jayud Global Logistics has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Jayud Global go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Jayud Global

Given the investment horizon of 90 days Kinetik Holdings is expected to generate 5.61 times less return on investment than Jayud Global. But when comparing it to its historical volatility, Kinetik Holdings is 6.58 times less risky than Jayud Global. It trades about 0.2 of its potential returns per unit of risk. Jayud Global Logistics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  75.00  in Jayud Global Logistics on September 13, 2024 and sell it today you would earn a total of  118.00  from holding Jayud Global Logistics or generate 157.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Kinetik Holdings  vs.  Jayud Global Logistics

Kinetik Holdings

Risk-Adjusted Performance

15 of 100

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.

Jayud Global Logistics

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jayud Global Logistics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Jayud Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinetik Holdings and Jayud Global

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

The idea behind Kinetik Holdings and Jayud Global Logistics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..