Correlation Between Weibo Corp and KINDER
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By analyzing existing cross correlation between Weibo Corp and KINDER MORGAN INC, you can compare the effects of market volatilities on Weibo Corp 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 Weibo Corp with a short position of KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and KINDER.
Diversification Opportunities for Weibo Corp and KINDER
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weibo and KINDER is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC and Weibo Corp 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 Weibo Corp 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 INC has no effect on the direction of Weibo Corp i.e., Weibo Corp and KINDER go up and down completely randomly.
Pair Corralation between Weibo Corp and KINDER
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 8.05 times more return on investment than KINDER. However, Weibo Corp is 8.05 times more volatile than KINDER MORGAN INC. It trades about 0.16 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about -0.21 per unit of risk. If you would invest 892.00 in Weibo Corp on September 23, 2024 and sell it today you would earn a total of 84.00 from holding Weibo Corp or generate 9.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Weibo Corp vs. KINDER MORGAN INC
Performance |
Timeline |
Weibo Corp |
KINDER MORGAN INC |
Weibo Corp and KINDER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Weibo Corp and KINDER
The main advantage of trading using opposite Weibo Corp and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp 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.Weibo Corp vs. Outbrain | Weibo Corp vs. Perion Network | Weibo Corp vs. Taboola Ltd Warrant | Weibo Corp vs. Fiverr International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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