Correlation Between Aurelia Metals and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Aurelia Metals 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 Aurelia Metals and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Kkr Credit Income, you can compare the effects of market volatilities on Aurelia Metals 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 Aurelia Metals with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Kkr Credit.
Diversification Opportunities for Aurelia Metals and Kkr Credit
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurelia and Kkr is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals 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 Aurelia Metals 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 Aurelia Metals 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 Aurelia Metals i.e., Aurelia Metals and Kkr Credit go up and down completely randomly.
Pair Corralation between Aurelia Metals and Kkr Credit
Assuming the 90 days trading horizon Aurelia Metals is expected to generate 4.05 times less return on investment than Kkr Credit. In addition to that, Aurelia Metals is 5.01 times more volatile than Kkr Credit Income. It trades about 0.0 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about 0.04 per unit of volatility. If you would invest 221.00 in Kkr Credit Income on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Kkr Credit Income or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelia Metals vs. Kkr Credit Income
Performance |
| Timeline |
| Aurelia Metals |
| Kkr Credit Income |
Aurelia Metals and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelia Metals and Kkr Credit
The main advantage of trading using opposite Aurelia Metals and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals 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.| Aurelia Metals vs. Northern Star Resources | Aurelia Metals vs. Evolution Mining | Aurelia Metals vs. Bluescope Steel | Aurelia Metals vs. Sandfire Resources NL |
| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Midway | Kkr Credit vs. Aristocrat Leisure | Kkr Credit vs. Imricor Medical Systems |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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