Correlation Between PetMed Express and KINDER
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By analyzing existing cross correlation between PetMed Express and KINDER MORGAN ENERGY, you can compare the effects of market volatilities on PetMed Express 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 PetMed Express with a short position of KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetMed Express and KINDER.
Diversification Opportunities for PetMed Express and KINDER
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetMed and KINDER is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PetMed Express and KINDER MORGAN ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN ENERGY and PetMed Express 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 PetMed Express 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 ENERGY has no effect on the direction of PetMed Express i.e., PetMed Express and KINDER go up and down completely randomly.
Pair Corralation between PetMed Express and KINDER
Given the investment horizon of 90 days PetMed Express is expected to generate 14.67 times more return on investment than KINDER. However, PetMed Express is 14.67 times more volatile than KINDER MORGAN ENERGY. It trades about 0.09 of its potential returns per unit of risk. KINDER MORGAN ENERGY is currently generating about -0.15 per unit of risk. If you would invest 389.00 in PetMed Express on October 2, 2024 and sell it today you would earn a total of 111.00 from holding PetMed Express or generate 28.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.16% |
Values | Daily Returns |
PetMed Express vs. KINDER MORGAN ENERGY
Performance |
Timeline |
PetMed Express |
KINDER MORGAN ENERGY |
PetMed Express and KINDER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetMed Express and KINDER
The main advantage of trading using opposite PetMed Express and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetMed Express 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.PetMed Express vs. High Tide | PetMed Express vs. China Jo Jo Drugstores | PetMed Express vs. Walgreens Boots Alliance | PetMed Express vs. 111 Inc |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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