Correlation Between Kinetik Holdings and Cyberlux Corp

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

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

Diversification Opportunities for Kinetik Holdings and Cyberlux Corp

-0.4

Correlation Coefficient

Kinetik Holdings  Cyberlux Corp

Very good diversification

The 3 months correlation between Kinetik and Cyberlux is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kinetik Holdings and Cyberlux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlux Corp 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 Cyberlux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlux Corp has no effect on the direction of Kinetik Holdings i.e., Kinetik Holdings and Cyberlux Corp go up and down completely randomly.

Pair Corralation between Kinetik Holdings and Cyberlux Corp

Given the investment horizon of 90 days Kinetik Holdings is expected to generate 14.52 times less return on investment than Cyberlux Corp. But when comparing it to its historical volatility, Kinetik Holdings is 9.81 times less risky than Cyberlux Corp. It trades about 0.07 of its potential returns per unit of risk. Cyberlux Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.53  in Cyberlux Corp on May 5, 2025 and sell it today you would earn a total of  0.30  from holding Cyberlux Corp or generate 56.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kinetik Holdings  vs.  Cyberlux Corp

Kinetik Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetik Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Kinetik Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cyberlux Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cyberlux Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental drivers, Cyberlux Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kinetik Holdings and Cyberlux Corp

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

The idea behind Kinetik Holdings and Cyberlux Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.