Correlation Between KINDER and Xtant Medical

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

By analyzing existing cross correlation between KINDER MORGAN INC and Xtant Medical Holdings, you can compare the effects of market volatilities on KINDER and Xtant Medical 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 Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of KINDER and Xtant Medical.

Diversification Opportunities for KINDER and Xtant Medical

0.3

Correlation Coefficient

KINDER  Xtant Medical

Weak diversification

The 3 months correlation between KINDER and Xtant is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding KINDER MORGAN INC and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical Holdings 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 INC are associated (or correlated) with Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of KINDER i.e., KINDER and Xtant Medical go up and down completely randomly.

Pair Corralation between KINDER and Xtant Medical

Assuming the 90 days trading horizon KINDER MORGAN INC is expected to generate 0.29 times more return on investment than Xtant Medical. However, KINDER MORGAN INC is 3.5 times less risky than Xtant Medical. It trades about -0.12 of its potential returns per unit of risk. Xtant Medical Holdings is currently generating about -0.07 per unit of risk. If you would invest  7,139  in KINDER MORGAN INC on October 8, 2024 and sell it today you would lose (532.00) from holding KINDER MORGAN INC or give up 7.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	87.1%
Values	Daily Returns

KINDER MORGAN INC  vs.  Xtant Medical Holdings

KINDER MORGAN INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KINDER MORGAN INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KINDER MORGAN INC investors.

Xtant Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xtant Medical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with KINDER and Xtant Medical

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

The idea behind KINDER MORGAN INC and Xtant Medical Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.