Correlation Between Auswide Bank and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Auswide Bank and Kkr Credit 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 Auswide Bank and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auswide Bank and Kkr Credit Income, you can compare the effects of market volatilities on Auswide Bank and Kkr Credit 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 Auswide Bank with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auswide Bank and Kkr Credit.
Diversification Opportunities for Auswide Bank and Kkr Credit
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auswide and Kkr is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Auswide Bank and Kkr Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Credit Income and Auswide Bank 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 Auswide Bank are associated (or correlated) with Kkr Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Credit Income has no effect on the direction of Auswide Bank i.e., Auswide Bank and Kkr Credit go up and down completely randomly.
Pair Corralation between Auswide Bank and Kkr Credit
Assuming the 90 days trading horizon Auswide Bank is expected to generate 2.24 times more return on investment than Kkr Credit. However, Auswide Bank is 2.24 times more volatile than Kkr Credit Income. It trades about 0.17 of its potential returns per unit of risk. Kkr Credit Income is currently generating about -0.02 per unit of risk. If you would invest 422.00 in Auswide Bank on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Auswide Bank or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auswide Bank vs. Kkr Credit Income
Performance |
| Timeline |
| Auswide Bank |
| Kkr Credit Income |
Auswide Bank and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auswide Bank and Kkr Credit
The main advantage of trading using opposite Auswide Bank and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auswide Bank position performs unexpectedly, Kkr Credit 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 Kkr Credit will offset losses from the drop in Kkr Credit's long position.| Auswide Bank vs. National Australia Bank | Auswide Bank vs. National Australia Bank | Auswide Bank vs. Westpac Banking | Auswide Bank vs. National Australia Bank |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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