Correlation Between Kinetik Holdings and Vantiv

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

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

Diversification Opportunities for Kinetik Holdings and Vantiv

0.0

Correlation Coefficient

Kinetik Holdings  Vantiv

Pay attention - limited upside

The 3 months correlation between Kinetik and Vantiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Vantiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantiv Inc 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 Vantiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantiv Inc has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Vantiv go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Vantiv

If you would invest (100.00) in Vantiv Inc on February 1, 2024 and sell it today you would earn a total of  100.00  from holding Vantiv Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kinetik Holdings  vs.  Vantiv Inc

Kinetik Holdings

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Kinetik Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Vantiv Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vantiv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Vantiv is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kinetik Holdings and Vantiv

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

The idea behind Kinetik Holdings and Vantiv Inc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.