Correlation Between Income Growth and Kkr Income
Can any of the company-specific risk be diversified away by investing in both Income Growth and Kkr Income 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 Income Growth and Kkr Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Growth Fund and Kkr Income Opportunities, you can compare the effects of market volatilities on Income Growth and Kkr Income 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 Income Growth with a short position of Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Growth and Kkr Income.
Diversification Opportunities for Income Growth and Kkr Income
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Income and Kkr is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Income Growth Fund and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities and Income Growth 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 Income Growth Fund are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of Income Growth i.e., Income Growth and Kkr Income go up and down completely randomly.
Pair Corralation between Income Growth and Kkr Income
Assuming the 90 days horizon Income Growth Fund is expected to generate 1.11 times more return on investment than Kkr Income. However, Income Growth is 1.11 times more volatile than Kkr Income Opportunities. It trades about 0.15 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about 0.06 per unit of risk. If you would invest 3,447 in Income Growth Fund on September 2, 2024 and sell it today you would earn a total of 501.00 from holding Income Growth Fund or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Income Growth Fund vs. Kkr Income Opportunities
Performance |
| Timeline |
| Income Growth |
| Kkr Income Opportunities |
Income Growth and Kkr Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Growth and Kkr Income
The main advantage of trading using opposite Income Growth and Kkr Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Growth position performs unexpectedly, Kkr Income 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 Income will offset losses from the drop in Kkr Income's long position.| Income Growth vs. Ultra Fund I | Income Growth vs. Value Fund I | Income Growth vs. Equity Growth Fund | Income Growth vs. International Growth Fund |
| Kkr Income vs. Nuveen Floating Rate | Kkr Income vs. Blackrock Muni Intermediate | Kkr Income vs. Eaton Vance Senior | Kkr Income vs. Nuveen Dynamic Municipal |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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