Correlation Between Autosports and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Autosports 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 Autosports and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and Kkr Credit Income, you can compare the effects of market volatilities on Autosports 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 Autosports with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and Kkr Credit.
Diversification Opportunities for Autosports and Kkr Credit
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autosports and Kkr is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group 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 Autosports 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 Autosports Group 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 Autosports i.e., Autosports and Kkr Credit go up and down completely randomly.
Pair Corralation between Autosports and Kkr Credit
Assuming the 90 days trading horizon Autosports Group is expected to under-perform the Kkr Credit. In addition to that, Autosports is 2.19 times more volatile than Kkr Credit Income. It trades about -0.04 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 222.00 in Kkr Credit Income on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Kkr Credit Income or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. Kkr Credit Income
Performance |
| Timeline |
| Autosports Group |
| Kkr Credit Income |
Autosports and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and Kkr Credit
The main advantage of trading using opposite Autosports and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports 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.| Autosports vs. Summit Resources Limited | Autosports vs. iShares Global Healthcare | Autosports vs. Australian Dairy Farms | Autosports vs. Adriatic Metals Plc |
| Kkr Credit vs. Iron Road | Kkr Credit vs. Phoslock Environmental Technologies | Kkr Credit vs. Green Technology Metals | Kkr Credit vs. Legacy Iron Ore |
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.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |