Correlation Between Australian Strategic and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Australian Strategic 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 Australian Strategic and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian Strategic Materials and Kkr Credit Income, you can compare the effects of market volatilities on Australian Strategic 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 Australian Strategic with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Strategic and Kkr Credit.
Diversification Opportunities for Australian Strategic and Kkr Credit
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Australian and Kkr is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Australian Strategic Materials 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 Australian Strategic 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 Australian Strategic Materials 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 Australian Strategic i.e., Australian Strategic and Kkr Credit go up and down completely randomly.
Pair Corralation between Australian Strategic and Kkr Credit
Assuming the 90 days trading horizon Australian Strategic Materials is expected to under-perform the Kkr Credit. In addition to that, Australian Strategic is 5.92 times more volatile than Kkr Credit Income. It trades about -0.03 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about 0.05 per unit of volatility. If you would invest 225.00 in Kkr Credit Income on October 18, 2024 and sell it today you would earn a total of 12.00 from holding Kkr Credit Income or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian Strategic Materials vs. Kkr Credit Income
Performance |
| Timeline |
| Australian Strategic |
| Kkr Credit Income |
Australian Strategic and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian Strategic and Kkr Credit
The main advantage of trading using opposite Australian Strategic and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian Strategic 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.| Australian Strategic vs. Australian United Investment | Australian Strategic vs. Premier Investments | Australian Strategic vs. Home Consortium | Australian Strategic vs. Gold Road Resources |
| Kkr Credit vs. National Storage REIT | Kkr Credit vs. Australian Strategic Materials | Kkr Credit vs. Oneview Healthcare PLC | Kkr Credit vs. Health and Plant |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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