Correlation Between KINDER and Coursera

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

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

Diversification Opportunities for KINDER and Coursera

-0.17

Correlation Coefficient

KINDER  Coursera

Good diversification

The 3 months correlation between KINDER and Coursera is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding KINDER MORGAN ENERGY and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera and KINDER 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 KINDER MORGAN ENERGY are associated (or correlated) with Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of KINDER i.e., KINDER and Coursera go up and down completely randomly.

Pair Corralation between KINDER and Coursera

Assuming the 90 days trading horizon KINDER MORGAN ENERGY is expected to generate 14.48 times more return on investment than Coursera. However, KINDER is 14.48 times more volatile than Coursera. It trades about 0.05 of its potential returns per unit of risk. Coursera is currently generating about -0.01 per unit of risk. If you would invest  9,090  in KINDER MORGAN ENERGY on September 23, 2024 and sell it today you would lose (463.00) from holding KINDER MORGAN ENERGY or give up 5.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	73.84%
Values	Daily Returns

KINDER MORGAN ENERGY  vs.  Coursera

KINDER MORGAN ENERGY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KINDER MORGAN ENERGY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for KINDER MORGAN ENERGY investors.

Coursera

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coursera are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Coursera may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with KINDER and Coursera

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

The idea behind KINDER MORGAN ENERGY and Coursera 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.